Question

After graduating with a Food Technology degree, Elina is planning to start a business that manufactures halal and natural food flavouring, including cake & cookies mixes. She has bought a factory in Rawang and is currently equipping it with food manufacturing machines. Elina is also in the process of hiring some production line workers, who will be trained to work using these machines.

Do some research for Elina and formulate to her some basic legal advice related to the following commercial law areas:

1.       She would like to export her products to the Middle East, Central Asia and Europe. What are the export opportunities and support provided by Ministry of International Trade and Industry (MITI), Malaysia?

2.       Apart from the exporting activity, Elina would also like to target the B2C market and sell her products via Lazada, Shopee and Amazon.com. Must she register her website and what are the legal effects of an e-commerce contract?

3.       Elina’s product range is named “Delish” and she has designed the logo and colours to identify her brand. Provide Elina some information, on how she may trademark her product name with the Intellectual Property Corporation of Malaysia (MyIPO) and/ or the World Intellectual Property Organisation (WIPO); and

4.       To conduct her business, Elina will be managing her administrative and marketing staff in their Kuala Lumpur office, as well oversee their production operation in their Rawang factory. Elina is equipping the factory with machines and hiring production employees. In the next 3-6 months, she may also buy some lorries & hire some drivers to transport the products to her customers. Based on Elina’s business operations, advise her on the types of business insurance that she needs to consider, and their legal effect.

You are expected to provide specific and applied examples in your answer.

Answer 1

Answer 1

The corporation which promotes the export in Malaysia is called as Malaysia external trade Development Corporation. It is the national Trade Promotion agency in Malaysia.

1. It has the export training program. It organizes different kind of seminar and workshop to new exporters. This will guide them for export and existing opportunities in export related to Merchandise and service.
The focus in this training program is to equip them with knowledge on market opportunities in global market. It guides them on trade practices. Issues related to trade financing marketing market updates and other marketing requirements are discuss in this training.
2. It provides them with useful with tips related to exporting.
3. The details of the different tariff codes also provided by Malaysian external trade Development Corporation. (METDC)
4. Understanding of free trade agreements between different countries was also explained by METDC.
5. Various options related to trade finance also discuss by METDC.
Answer 2.
To sell products via commerce websites like lazada ,shoppe ,and amazon.com it is not mandatory to have own website. But if the company has its own website it would be of great help to her. She can give information related to all the products in great detail in her website. In her website she can also give details of contacts if somebody wants to contact her.
The legal effects of an e-commerce that all the fundamentals which govern general contract law also applied to an electronic contract law. The contract formed between the two parties are exchanged by electronic communication such as the email. This way both the offer and acceptance can easily be exchanged between both the parties. Whenever an order is placed on the e-commerce it is the liability of the the company who is selling the product on the E-commerce website has to dispatch the product to the customer . The E-Commerce charges its Commission which is generally 10 to 20% based on the product. After detecting its Commission the original amount is sent to the the seller.
Answer 3.
In order to trademark her brand. An application is to be filed at the intellectual property corporation of Malaysia. This can be filed by filling up the form available on its online website. The fees for the application is paid which is RM 370. All the required documents are submitted. If the file is ok and approve the registration is valid for 10 years. Although One Key point which is to be considered is that registered trademark in Malaysia is only protected in Malaysia. If somebody has marked registration similar to that it will get rejected otherwise it will be approved.
Answer 4.
In order to cover that is there are several types of insurance available in Malaysia. All risk insurance is a type of insurance which covers the business in case of damages done to the equipment and machinery that are purchased by the company.As per the agreed upon terms and conditions if the machinery and equipments are covered under insurance then they will get the policy money in case they get damage.
Then there is other type of insurance which is called as employee benefit insurance. This is a kind of insurance which take care of the health of the workers. It gives them the medical benefits. Some employees may realize that this type of insurance as an additional advantage to them and their show interest to work for the company the company.
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