...in the State of Denial, is extremely upset about the additional expense and costs this statute inflicts on her business. Tanya is losing money due to the new regulation. Therefore, she intends to file a suit against Confusion to overturn the act. The court that will have jurisdiction over Tanya is the federal court because the Confusion State has violated the commerce clause of the constitution. The commerce clause is an enumerated power listed in the United States Constitution. “The commerce clause gives the federal government the authority to regulate interstate commerce “(Cheeseman, 2010, p.73). The federal district court also has jurisdiction over citizenship lawsuits. According to Cheeseman, “A case may be brought in federal court if there is diversity of citizenship. Diversity of citizenship occurs if a lawsuit involves citizens from different states” (p.41, 2010). The Commerce Clause gives the federal government the authority to regulate interstate commerce. Because this clause authorizes the federal government to regulate commerce, it has a greater impact on business than does any other provision in the Constitution. The rules that the State of Confusion is implementing are...
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...Revenue recognition – the accounting term for determining the amount of revenues to be “booked” for purposes of calculating a firm’s earnings in a given period – is an important, complex and controversial issue. The importance of revenue recognition stems from the accountant’s approach to calculating earnings, which is to first calculate recognized (“booked”) revenues, and then deduct the accounting costs of earning those revenues (a process known as “matching costs with revenues”). Consequently, revenue recognition directly affects reported earnings and indirectly affects balance sheet numbers and several important financial ratios. Generally Accepted Accounting Principles (GAAP) includes some general revenue recognition principles as well as many specific rules for recognizing revenues in particular circumstances. Even then, there frequently is scope for interpretation and judgment by the company’s managers and auditors. For various reasons managers can be expected to have preferences for the amount of reported earnings, so when the rules provide some latitude they can be expected to exercise judgment in a fashion that reflects those preferences. In addition, when there are rules that provide explicit revenue recognition guidance, managers sometimes knowingly or unknowingly violate them. Not surprisingly, approximately 60 per cent of all accounting malfeasance involves revenue recognition issues. Revenue recognition is particularly important in the software industry,...
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...the issue. Briefly describe that UST is planning to reverse a long-standing conservative financial policy. Issues: a) UST had seven pending health related lawsuits at the end of 1998. P.66 b) There’s previous uncertainty is enhanced by a lawsuit that alleged that UST had violated antitrust and advertising laws and participated in anti-competitive conduct. The industry agreed in November to settle state Medicaid lawsuits with a $206 billion settlement and bans on advertising and promotions that appeal to youth. P.66 c) UST is a dominant player of most smokeless tobacco, or most sniff, controlling approximately 77%. Also, UST expanded the category and continued to rise prices, smaller players eroded UST’s market share primarily by cutting price. However, it is not able to compete and against price-value brands. (which raised small companies concerns) price-value brands. P.64 d) The EPA report classifying environmental Tobacco smoke as a known human carcinogen. e) There is chance that hard to expand the tobacco to international market due to cultural issues tobacco 2) Evaluate the business risks of UST from the viewpoint of a credit analyst or potential bondholder. Issue a,b) UST had seven pending health related lawsuits at the end of 1998, which is uncertain about the result. It the company lost in the lawsuit, it will lost lots of money. Also, the tobacco will be push by the new law of settle state Medicaid, which prevents youth to use tobacco. Since there are lots...
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...Question and Answer: 16. List the amount of cash flows from each of the 3 activities: Operating, Investing, and Financing for the 2 most recent years. What was the increase or decrease in cash for each of these years? Answer: $ Million | 2012 | 2011 | Operating | 50,856 | 37,529 | Investing | (48,227) | (40,419) | Financing | (1,698) | 1,444 | Change in cash | 931 | (1,446) | 17.Were there any Non-Cash Investing/Financing Transactions? Describe the type and amount. Answer: No, there were no Non-Cash Investing/ Financing Transactions 18.What is the dollar difference between accrual net income and Cash provided by Operations? Answer: Accrual Net Income = $ 41,733 million Cash provided by operations = $ 50,856 million Difference = $9,123 million 19.What investing activity provided the largest inflow of cash in the current year? Answer: Proceeds from sale of marketable securities 20.What investing activity used the largest amount of cash in the current year? Answer: Purchase of marketable securities 21.What financing activity provided the largest inflow of cash in the current year? Answer: Excess tax benefits 22.What financing activity used the largest amount of cash in the current year? Answer: Dividends 23.Does the company have sufficient cash inflows from the appropriate category? Describe any problems the company many experience with cash flow from your analysis of the cash flow statement. Answer: 24.Show the change in...
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...Chapter 10 Review introduction to contracts A contract is a promise that the law will enforce. Contracts are intended to make business matters more predictable. Analyzing a contract generally involves inquiring into some or all of these issues: 1. What is the subject of the agreement? • If the contract is for the sale of goods, UCC Article 2 governs. • If the contract is for services, employment, or real estate, the common law governs. 2. Did the parties intend to contract? • If the parties formally agreed and stated explicit terms, there is probably an express contract. • If the parties did not formally agree but their conduct, words, or past dealings indicate they intended a binding agreement, there may be an implied contract. 3. If there is an agreement, is there any reason to doubt its enforceability? • An unenforceable agreement is one with a legal defect, such as an oral agreement that the law requires to be in writing. • A voidable contract occurs when one party has committed fraud, giving the other party the right to terminate the agreement, or when one party lacks capacity to make the contract and may escape liability. • A void agreement means that the law will ignore the deal regardless of what the parties want, typically because the purpose of the deal is illegal. 4. If there is no contract, are there other reasons to give the plaintiff damages? • A claim of promissory estoppel requires that the defendant made a promise knowing that...
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...A Manager’s Handbook: “All people, regardless of race, religion or culture, harmoniously living and working together into the future” Contents Introduction to Law and Business Ethics and Social Responsibility 3 Legal Dispute Resolution Process and Alternative Dispute Resolution Mechanisms 4 Business and the Constitution and Administrative Law 5 Business Crimes, Business Torts, and Product Liability 6 Contracts 7 Business Structure and Securities Regulation 8 Business Property and Antitrust Law 9 Employment Law 10 Introduction to Law and Business Ethics and Social Responsibility Include in this section information from Assignment 1.2. BP Oil, crisis in the Gulf The careless and unethical approach that BP Oil practices when drilling for oil, led to one of the largest man-made disaster in history. The Gulf of Mexico has had devastating results due to BP’s lack of action in regards to emergency protocol. Though the spill has since been capped and controlled, the aftermath isn’t going anywhere soon, with new problems emerging daily from the spill itself and from cleanup efforts as well. The extent of damage is numerous, and will cost BP millions of not billions in awards from the many law suits that stand, as well as ones pending. BP will never be able to fully restore or recover what once was. 27,000 workers are presently involved with cleanup efforts; Scientists from all fields are giving advice as well. A major cause for concern for...
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...Summary: Provide a summary of the company, and the facts and issues of the case. According to Ferrell, the Coca-Cola Company is the world’s largest beverage company, and markets four of the world’s top five leading soft drinks. The company operates the largest distribution system in the world, which enables it to serve customers and businesses in more than two hundred countries. The Coca-Cola Company estimates that about 85 percent of its sales come from outside the United States (Ferrell). Former CEO Roberto Goizueta once said “Coca-Cola used to be an American company with a large international business. Now we are a large international company with a sizable American business” (Ferrell). According to Ferrell, Coca-Cola is the most-recognized trademark and brand name in the world today with a trademark value estimated to be about $25 billion. Coca-Cola’s vision for sustainable growth is fostered by being a great place to work where people are inspired to be the best they can be, by bringing the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs, by being a responsible global citizen that makes a difference, and maximizing return to share owners while being mindful of their overall responsibilities (Ferrell). While Coca-Cola’s vision statement may sound ethical, they have had several unethical issues come about in the past decade. According to Ferrell, in the early 2000’s Coca-Cola was involved in racial discrimination, misrepresenting...
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...Instructions for Article Summary (example attached) Article Requirements: * Source/topic: Choose a substantial news article (at least 2 pages long) from either the (1) Wall Street Journal, or (2) New York Times (available free online) that covers a significant U.S. legal issue related to business. Do not use editorials, advice columns, or press releases. (Up to 15 points deducted for articles not meeting these standards). * Date: The article must have been published within 7 days before the date the summary is submitted. (Up to 15 pts. will be deducted if the article is too old.) * Copy: Staple the article (cut from the paper and taped to an 8-1/2” sheet OR a printed copy of the online version) to the summary. The paper name, article title, and publication date must be printed on the article. (4 pts. deducted if this info is missing; failure to attach the article will be a 10 pt. deduction) Summary requirements (points will be deducted for each requirement that is not satisfied). Examples are shown below in italics/brackets—do not bracket/italicize your content. 1. Summary must be typed (double-spaced, Times New Roman 12 pt. font, 1” top/left/right margins, .5” bottom margin). The total paper must be at least one full page, but can be longer. Points will be deducted if the formatting is incorrect or the paper is shorter than one full page. 2. Your name and section # should be at the top left corner of the page. [John Doe-Sec. 1] 3. At the top right...
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...The Microsoft Antitrust Case* by Nicholas Economides** Revised April 2, 2001 Abstract This paper analyzes the law and economics of United States v. Microsoft, a landmark case of antitrust intervention in network industries. The United States Department of Justice and 19 States sued Microsoft alleging (i) that it monopolized the market for operating systems of personal computers and took anti-competitive actions to illegally maintain its monopoly; (ii) that it attempted to monopolize the market for Internet browsers because such browsers would create competition for operating systems; (iii) that it bundled its browser (Internet Explorer) with Windows; and that it engaged in a number of other anti-competitive exclusionary arrangements with computer manufacturers, Internet service providers, and content providers attempting to thwart the distribution of Netscape’s browser. The District Court Judge found in most points for the plaintiffs and ordered the breakup of Microsoft into two companies, one with all the operating systems software, and one with all other products of the company. The District Court also imposed a number of severe restrictions on the business conduct of Microsoft. We analyze the economic issues related to liability. We also analyze the applicability and effectiveness of the remedies imposed by the District Court and contrast them with other potential remedies. * Forthcoming in Journal of Industry, Competition and Trade: From Theory to Policy (August 2001)...
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...Antitrust law is the law of competition, and it is perhaps the least understood law of all. This article provides an overview and explanation of the essential principals of antitrust law, along with comments on certain recurring themes and recent developments in the voluminous case law by which the courts have struggled to give meaning and practical effect to the principal antitrust statutes. What Is Antitrust Law? Broadly speaking, antitrust laws seek to promote fair competition on the merits and to protect consumers and wronged competitor businesses from anti-competitive business practices — practices undertaken in effort to undermine competitive commercial behavior in a given market or line of commerce. The antitrust laws therefore forbid the wrongful acquisition or preservation of monopoly power, the abuse of monopoly power in order to establish a new monopoly, and concerted restraints of trade (i.e., business practices undertaken by two or more firms that improperly stifle or suppress “competition on the merits” in a given market). They also govern proposed mergers and acquisitions that are sufficiently large to constitute a threat to competition, and they address commercial practices that pose an arguable danger to competition on the merits in a properly defined antitrust market. The Principal Antitrust Offenses. Antitrust law is the law of competition. It is concerned with wrongs committed against competition on the merits in a given line of commerce or market. It is...
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...CHAPTER 21 UNDERSTANDING THE BUSINESS ENVIRONMENT: THE ECONOMICS OF REGULATION CHAPTER SUMMARY This chapter focuses on the economics of regulation. It starts by discussing why it is important for managers to understand the regulatory process. Three potential reasons for government intervention are presented (defining and enforcing property rights, redressing “market failures,” and redistributing wealth). The primary focus is on the “economic theory of regulation” which posits that regulation is demanded by special interest groups and supplied by self-interested politicians. Rational free riding on the part of voters allows well-organized coalitions to pass regulations that redistribute wealth in their favor. The chapter ends by discussing the managerial implications of this analysis and by presenting a case study World Motors. CHAPTER OUTLINE IMPORTANCE OF REGULATION TO MANAGERS Managerial Application: Europe Relaxes Its Labor Laws ECONOMIC MOTIVES FOR GOVERNMENT INTERVENTION Defining and Enforcing Property Rights Managerial Application: War and Hunger Managerial Application: Multinational Counterfeiting Redressing Market Failures Externalities Managerial Application: Alternative Dispute Resolution Managerial Application: Frivolous Lawsuits Managerial Application: Direct and Indirect Costs of the Food and Drug Administration Public Goods Monopoly Historical Application: Interstate Commerce Commission ...
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...CONTRACT LAW KENNETH D ROBINSON JR BUSINESS LAW 311 GARY GENTRY 9 JUNE 2014 Abstract A Body of law that governs oral and written agreements associated with exchange of goods and services, money, and properties is recognized as contract law. Contract law includes topics such as the nature of contractual obligations, limitation of actions, freedom of contract, privity of contract, termination of contract, and covers also agency relationships, commercial paper, and contracts of employment. Contract law is one of the many different aspects of business law and must be understood in the world of law. From valid contracts, to voidable, enforceable and unenforceable contracts they must all be understood and taken into account. If you were starting a business you would first need to know what contract law is, its history and why is in important in the world today. CONTRACT LAW Over the last several of weeks since announcing it was banning Los Angeles Clippers owner Donald Sterling for life, The NBA has had hopes of getting approval from the league's owners to force him to sell the team, little has been known of the NBA's exact legal strategy. While the league's constitution, publicly revealed for the first time by the league last Tuesday, made it clear that grounds exist to remove an owner if that owner "fail(s) or refuse(s) to fulfill its contractual obligations to the Association," it remained unclear what contracts Sterling might have violated when he made...
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...TRADEMARKS AND LICENSING Introduction Trademarks are images that companies use to identify a product, service, or brand. Companies retain intellectual property in the creation of images that represent the company in commercial venues. A license is a privilege to use the intellectual property of another person or company in a meaningful way. Licenses can be permanent, temporary, or representative of another type of property interest. In this topic, you will be learning about: · Trademarks · Functions · Acquisition and usage · General licensing considerations · Unfair competition and intellectual property licensing · Licensing provisions Learning Materials Trademarks A trademark is a mark or a sign that will be distinctive, and will identify a good or service that is connected with a company or an individual.Historically, artisans would include a mark or “sign” on their works to denote that they produced the item. Eventually, these “signs” or “marks” evolved into what is now legally known as a trademark. Today, to be a protected mark, a trademark should be registered.The system is helpful in leading consumers to be able to identify authentic products and services, and by the same token, companies can use trademarks to build reputations and foster good will.Trademarks come in a wide variety of types. A trademark can be any of the following: a picture, word, symbol, or letter. It may also be a phrase or a combination of pictures and words.| A trademark can be multi-dimensional...
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...Debt Policy at UST Case Questions Group members: Wei-Ting Liao; Cong Ren; Gerald Nyiti; Beidan Wang 1- ) Give a brief summary of the company background UST Inc. is a smokeless tobacco company which enjoyed a long tradition and a recognizable brand name. It is the leading producer of moist smokeless tobacco products and widely known for its conservative debt policy and uninterrupted cash dividend payout since 1912. The company is the major player in U.S. smokeless tobacco market. For example, it holds the maximum market share (77%) as a whole, and dominates especially in the growing segment of moist smokeless tobacco. Additionally, it has widely recognized brand and competitive positon in the market by constant innovation and new product innovation. Finally, UST has historically been one of the most profitable companies not only in the smokeless tobacco market but also in the corporate America. Although the above advantages, UST now faces with continuous threat from price-value competitors, a softening smokeless tobacco market, investors’ concern about over-investment on non-core operations and negative effect of public and political sentiment towards the tobacco industry. 2- ) Evaluate UST’s attributes/Risks from view point of bondholder The following factors weave into the risks and attributes of the company from the creditors’ point of view (“” and “” represents advantage and disadvantage, respectively): Widely recognizable brand Name UST has widely recognized...
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...Executive Summary Las Vegas Sands Corporation (“LVS”) is arguably the world’s premier casino resort operator. With its operations in Las Vegas, Macau, Pennsylvania, and its new development in Singapore and Europe LVS, is now well-positioned to capture a large slice of what is becoming an increasingly huge pie. They are the biggest company in its industry with a USD market cap of 35.1 billion as of 2011. The casino operator has been a pioneer in opening new markets in Asia, and will continue to aggressively focus on a variety of other development opportunities where it’s needed. However, LVS has faced significant financial challenges since the economic recession began in the fourth quarter of 2008. Among the significant ones is its large amount of long term debt currently at 9.58 billion. Las Vegas Sands Corporation has strategically sold some of their “non-core” assets such as the Venetian retail mall, and its Shoppes at the Palazzo in order to remain compliance with its credit covenants. With this said, there are now in the position to return to profitable operations with its Asian pipeline and its new development project in Europe with the assumption that upon completing these projects it will generate enough revenue to get rid of all their debts. In addition, to their debt issues are the ongoing lawsuits that have brought a threat from government officials questioning how the company conducts its domestic and foreign operations. This is an issue of growing importance especially...
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