However, recent Advertising Standards Authority (ASA) adjudications on two BMW press adverts, demonstrate that a rigorous approach is needed to justify environmental claims.

The first adjudication related to the Z4s Drive 35is. BMW stated the BMW EfficientDynamics system  in the Z4s Drive 35is “reduces BMW emissions without compromising performance developments and is standard across the model range”. CO2 emissions were stated as 210g/km. Various other claims were made in connection with performance and reduced emissions.

Complaints were made to the ASA, that the advert was misleading as it  implied that the CO2 emission level of 210 g/km was low.

BMW provided evidence confirming the emission rate of 210 g/km was lower than BMW’s previous model and some competitors’ vehicles in the same category. However, the ASA noted from the Department of Transport fuel economy bandings, that this emission rate is within one of the higher bands. Accordingly, the ASA concluded the rate was relatively high for any car and that the ad was likely to mislead without further qualification. BMW were also informed that when comparing CO2 emissions against its own previous products or their immediate competitors, such comparison must be clear.

The second adjudication related to BMW’S concept car, Concept ActiveE. BMW claimed Concept ActiveE which is powered by electricity produced zero CO2 emissions when driving and “100% JOY 0% EMISSIONS”. The advert was challenged on the basis it was misleading, because the car would need to be charged with electricity, therefore producing emissions. The complaint was upheld.

Any business which wants to make environmental claims which stand up to the scrutiny of their customers and the ASA need to ensure:

• Their claims are accurate and the basis of the claims must be clear.
• Adverts do not omit any significant information which could result in misleading claims.
• Claims regarding reduction of emissions are backed up with substantial evidence including full “life cycle” considerations, and details of comparisons with its own or competitors’ products must be clearly communicated.

So, how do you recognize a guarantee?  Contracts of guarantees can arise in various commercial transactions. For example, if someone promises to pay off another person’s debt or perform their contract obligations if they fail to do so, they are giving a guarantee.

The following example provides an illustration of how a guarantee can arise.

An employment services agency is providing temporary construction workers to a construction company. The construction company has a contract with a property developer to build a block of flats. The construction company has failed to pay several agency invoices. So, the agency complains directly to the property developer, and threatens to take the workers off the project.  The property developer informs the agency that if there are any more problems with payment, that it will pay any monies owed by the construction company. This is a guarantee and needs to be in writing and signed by the developer, otherwise this agreement is unenforceable. A similar case ended up in court with the claimant unable to enforce an oral guarantee, and being out of pocket by over £1,000,000.

Someone’s word is no substitute for a written guarantee!

Pressures of business can often result in work starting on the basis of a verbal agreement with the intention to sort out a formal written contract as work is carried out. Doing business on this basis is never a good idea.

Misunderstandings and disputes can easily occur because of lack of documentation regarding the matters agreed. Also, it easy to overlook some matters if they are not properly recorded. As time passes, there is also the problem of trying to work out exactly what you agreed or have not agreed.

You may think that verbal arrangements save time. Unfortunately, in the long run they can waste time and money. If your client takes you to court over a dispute which is rooted in a verbal agreement- you will be too busy dealing with the court case to run your business properly!

Great relationships of trust can break down because one person leaves their company and their replacement may know nothing about the “relationship of trust”.  Whilst it is important to have good business relationships, routinely working on this “trust” basis is just not professional or sensible. The best of friends can have huge disagreements and never speak again. This can also happen with your business relationships.

If you are a small or big business, written contracts are essential.

Written contracts can help protect your business:

• by providing written evidence  of the matters that you have agreed with your client or supplier
• by clearly describing the obligations of the contract parties and remedies in the event problems occur
• by setting out the circumstances in which the contract can be terminated
• because you can include a clauses in your contract which clearly deal with your specific requirements e.g. payment terms, limits of  liability, confidentiality and ownership of intellectual property rights.

You can adopt simple contracting procedures which are integrated into your business. For example, include your standard terms of business in any quotation or proposal you send to a client. Make sure your client accepts your quotation and terms before you start work.

Also contracts do not have to be long, complicated and written in 16^th century English! 

If you do use standard written contracts for your business, it is a good idea to review them on a regular basis. Your business may have changed or there may be new laws which affect your standard contracts. If you have not reviewed your standard contracts for a few years- it is time to have a fresh look at them.

Non-compliance with advertising rules can result in changes to a campaign. In the worst case scenario, the campaign may have to come to an abrupt end.

Unauthorised use of photographs or artwork can result in a legal action for copyright infringement. Permission should be obtained or obtain a licence. For example, licences can be obtained to use images and photographs from stock photography agencies.

There may some usual rules that you may not be familiar with.  As you might expect, printing fake bank notes is a criminal offence!

You may want to use an image of a £10 note in your marketing material.   However, if you are thinking about using an image of any Bank of England bank note (past or present), you will need to obtain the prior approval of the Bank England. To make sure you stay on the right side of the law, here is a link to further information on the Bank of England website:

http://www.bankofengland.co.uk/banknotes/reproducing_banknotes.htm