...billion in fines to settle legal suits bought by the U.S. and German governments. The governments asserted that Siemens had used bribes to win business in countries around the world. These were the largest fines ever levied against a company for bribes, reflecting the scale of the problem at Siemens. Since 1999, the company had apparently paid some $1.4 billion in bribes. In Bangladesh, Siemens paid $5 million to the son of the prime minister to win a mobile phone contract. In Nigeria, it paid $12.7 million to various officials to win government telecommunications contracts. In Argentina, Siemens paid at least $40 million in bribes to win a $1 billion contract to produce national identity cards. In Israel, the company “provided” $20 million to senior government officials in order to win a contract to build power plants. In China, it paid $14 million to government officials to win a contract to supply medical equipment. And so on. Corruption at Siemens was apparently deeply embedded in the business culture. Before 1999, bribery of foreign officials was not illegal in Germany, and bribes could be deducted as a business expense under the German tax code. In this permissive environment, Siemens subscribed to the straightforward rule of adhering to local practices. If bribery was common in a country, Siemens would routinely use bribes to win business. Inside Siemens, bribes were referred to as “useful money.” When the German law changed in 1999, Siemens carried on as before, but...
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...hence make their future cash flows more certain * Have an underlying position in the asset | * using the market to bet on a price change * have no underlying position in the asset | * trade on mispricing between the derivatives & spot markets or between different derivative contracts to make a profit | * spot – price today, delivery today * forward – price today, delivery at a future date * future – price today, delivery at a future date Futures: * standardized with respect to quality, quantity and maturity * Clearing house * initial margins * Variation margins (marked to market) * Cash settled * Futures are a Zero Sum Loss Game * With cash settlement, the asset is never exchanged Users of future markets Hedgers: Selling Hedge: - Worried about a fall in price, so Sell Futures If price falls, loses in the spot market, but wins on the futures. If price rises, wins in the spot market, but loses on the futures e.g. Sell SPI futures to protect your share portfolio Buying Hedge:- Worried about a rise in price, so Buy Futures If price falls, wins in the spot market, but loses on the futures If price rises, loses in the spot market, but wins on the futures e.g. An electricity generator buys coal futures to protect themselves against a rise in the price of coal Speculators To bet on a price rise – Buy Futures To bet on a price fall – Sell Futures Arbitrageurs Trade on mispricing between the futures...
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...profits at all in negotiations. One should understand that these countries rely heavily on respect and making people feel comfortable and showing appreciation. One must understand what each action of the business people in these countries mean and how to handle each one or what to do in each case. One must understand the way each country communicates and what is an acceptable form of communication and what is not an acceptable practice, when to use non-verbal communication and when not to. 2. The Asian countries view contracts as just an agreement between two companies. In Japan, the contracts are very detailed but in other countries the contract does not have to go into much detail. Neither China nor Japan will sue anyone. They rely on their business relationships to solve disagreements. These countries are more about building relationships and getting to know the people they are going to do business with rather than negotiating for a contract. Most contracts are signed for building business...
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...Yeoh Theam Poh & Anor v Bench Win Sdn Bhd & Anor and other suits [2013] 8 MLJ Fact of the case The plaintiffs in the three suits occupied a dwelling(‘the premises’) built on state land that was built by the plaintiff’s father who was given the temporary occupying licence(TOL). The father still dwelling on the premises after the TOL had been cancelled without permission and approval from the state. The first defendant (Bench Win), a housing developer wanted to built an access to the housing project on the premises occupied by the plaintiffs. The compensation agreement was entered between them in separate that in return for the plaintiffs vacant the premises, the second defendant (Archlaw Development) would give them one free and two price-discounted apartments in housing project. The plaintiffs vacated the premises but Bench Win notified the plaintiffs that it was rescinding the compensation agreement as the housing project cannot be implemented for some reason. The plaintiffs filed the instant suits to declare that their compensation agreements with Bench Win and their sale and purchase agreement (SPAs) with Archlaw Development were valid and subsisting. They also sought an order that the SPAs be specifically performed and that they be awarded damages and costs. Bench Win, which only later discovered that the plaintiffs were squatters, pleaded that the consideration for the compensation agreement was illegal and the contract were void. Issues Whether the contact void...
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...the lease. Joanna, a neighbor, is in law school. She is not licensed to practice law. She offers to draft a lease for you for $100, and you unwisely accept. Later, you refuse to pay her fee and she sues to collect. Problem or Issue: Who will win the lawsuits, and why? Apart from the law, was it morally right for the law student to try to help out by drafting the lease, and why? Was she acting helpfully, or foolishly, or fraudulently? Is it just for you to agree to her fee and then refuse to pay it? What is society’s interest in this dispute? Should a court be more concerned with the ethical issue raised by the conduct of the two parties or with the social consequences of this agreement? Answer or Resolution: I will win the lawsuit. Joanna and I have no contract of leasing. It is right on morally to try to help me out by drafting the lease. She has no license of a lawyer, so she acts foolishly. It is not just for me to agree to her fee and then refuse to pay it. The society interest in the law school student whether or not can draft a lease. The court should be more concerned with the ethical issue raised by the conduct of the two parties. Analysis: A car sale contract passes ownership of the car from seller to buyer. The contract can be drafted and signed by the buyer and seller without a lawyer or notary present. However, witnesses to the contract’s signing might make the contract’s validity easier to prove, in the event that either party decides to take the other to...
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...Chap 9- Bilateral contract- a contract entered into by way of exchange of promises of the parties a promise for a promise. Unilateral -a contract in which the offerors offer can be accepted only by the performance of an act by the offeree a promise for an act. Implied in law contract (quasi)-an equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed. The doctrine is intended to prevent unjust enrichment and unjust detriment. Implied in fact contract- a contract where agreement between parties has been inferred from their conduct. Objective theory of contracts- a theory that says the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties. Executory-a contract that has not been fully performed. With court approval executory contracts may be rejected by a debtor in bankruptcy. Cases-City of Everett vs Mitchells- Mitchells buy safe for $50 and take to lock smith and find money. City commenced and interpleader action against the sumstad estate and the mitchells. State supreme court held that under the objective theory of contracts a contract was formed between the seller and the buyer courts rules in favor of mitchells. Dines vs Liberty mutual incurance- police recovered stolen car that belonged to liberty and stored it in dines towing facility. Liberty found out it was there but did not take it out. Dines wrote letter...
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...51% of my business (SBA, 2013). My business produces prosthetic limbs for amputees. The prosthetic limbs are made specifically to fit the veteran. The recent Iraq and Afghanistan wars have left many service members in need of prostheses. Additionally, the aging veteran population is also in need of prostheses due to diabetes and other long-term diseases. Federal Government Procurement Opportunity The Department of Veteranss Affairs develops medical contracts to supply prosthetics to veterans. The Department of Veterans Affairs has contracts with various companies, such as Morfey Limbs and Braces, to provide prosthetic limbs. Many of these companies are large and are not certified with the Small Business Administration, but the Department of Veteran Affairs is charged, nationally, with having 10% of their contracts be with service-disabled veteran-owned businesses (Fiscal Year, 2013). My business can help the Department of Veterans Affairs meet their goal of 10%. The Department of Veterans Affairs contract for prosthetic limb with vendors at the Veterans Integrated Service Network (VISN) and their acquisition centers. My business is located in VISN 12 and their Great Lakes Acquisition Center area (GLAC) (VISN 12, 2013). More specifically, my business is located in Chicago, IL. Veterans often have local vendors to design and create their limbs. Many veterans live within the Chicagoland area, and being a service-disabled veteran-owned business, I am more likely...
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...identify the legal issues; * apply your knowledge of the law whilst solving the problem; * identify relevant statutes and cases as appropriate; and * reach the correct conclusion. Problem 1 (6 marks) Topic 3 Jack’s son Tim is hoping to start a new computer business. He asks his father if he would be willing to lend him $50,000 to help him start the business. In return, Tim promises to give his father a new computer. Jack accepts Tim’s offer. Tim buys his father a new computer but then Jack tells Tim that he has changed his mind and will not be lending him the promised money. a) What is the issue you need to consider? (1mark) Jack and Tim had an agreement, but did they intend that agreement to be binding (ie a contract)? b) What is (or are) the relevant legal rule (or rules) relating to this problem? (1mark) Courts are reluctant to interfere in social or domestic arrangements unless that was the clear intention of the parties. c) What is (or are) the main case (or cases) related to this problem? (1 mark) Balfour v Balfour [1919] 2 KB 571(UK Court of Appeal). Todd v Nicol [1957] SASR 72...
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...dietary preferences and composition have changed dramatically with rapid economic development in the past several decades. A number of problems, however, exist in China’s relatively young dairy industry, including the imbalanced allocation of profits throughout the dairy supply chain. One of the root causes of the melamine infant powered milk scandal in 2008 was the unfair profit allocation mechanism in dairy supply chain. The revenue sharing contract approach has proven to be effective in generating market shares and total profits. In this study, we apply the three-stage revenue sharing contract model of Giannoccaro and Pontrandolfo (2004) in an analysis of dairy supply chain to explore its problems in profit allocation and possible solutions to them. The analysis was conducted by a case study of Hohhot, often called as “Milk capital of China”. Our results show that the current profit distribution in the dairy supply chain is not balanced: the supermarket’s profit > farmer’s profit > manufacturer’s profit. Under the revenue sharing contract setting, the dairy industry’s total profit increased...
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...Briggs v. Sackett, the Sacketts win the case. The parties entered into an oral collateral contract for Briggs to sell his house to the Sacketts under the conditions that the Sacketts pay the three months’ arrearages on the loan and agree to make future payments on the mortgage. After fifteen years Briggs filed an action to void the oral contract as in violation of the Statute of Frauds. Although the Statute of Frauds requires collateral contracts to be in writing, there is an exception that overrides this requirement. “The main purpose exception is an exception to the Statute of Frauds which states that if the main purpose of a transaction and an oral collateral contract is to provide pecuniary benefit to the guarantor, the collateral contract does not have to be in writing to be enforced.”(Cheeseman 222) The Sacketts indeed provided a pecuniary benefit to the Briggs by helping them catch up on past due payments and keeping the payments current for fifteen years. The main purpose exception overrides the Statute of Frauds and therefore the Sacketts win. 16.10 Intentional Interference with Contractual Relations The case between PG & E v. Bear Stearns is an example of “a tort that arises when a third party induces a contracting party to breach the contract with another party.” (Cheeseman 257) PG & E can sue Bear Stearns based on the basis of the intentional interference with contractual relations tort. PG & E entered into a contract with Agency and Bear Stearns induced...
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...THE TOP TEN WAYS THAT CULTURE CAN AFFECT INTERNATIONAL NEGOTIATIONS by: Jeswald W. SalacuseIssues: March / April 2005. Categories: Global Business. * Share on LinkedIn * Share on googlePlus * Share on facebook * Share on twitter * Share by email When Enron was still – and only – a pipeline company, it lost a major contract in India because local authorities felt that it was pushing negotiations too fast. In fact, the loss of the contract underlines the important role that cultural differences play in international negotiation. For one country’s negotiators, time is money; for another’s, the slower the negotiations, the better and more trust in the other side. This author’s advice will help negotiators bridge the cultural differences in international negotiation. (This article first ran in the September/October 2004 issue of Ivey Business Journal). International business deals not only cross borders, they also cross cultures. Culture profoundly influences how people think, communicate, and behave. It also affects the kinds of transactions they make and the way they negotiate them. Differences in culture between business executives—for example, between a Chinese public sector plant manager in Shanghai and a Canadian division head of a family company in Toronto– can create barriers that impede or completely stymie the negotiating process. The great diversity of the world’s cultures makes it impossible for any negotiator, no matter how skilled and experienced...
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...Briggs v Sacket, Sacket would win in court because the exception to the Statue of Frauds is part performance. The Briggs entered into an oral agreement with the Sacketts to sell them the home if they paid the arrearage and continued to make monthly payment. The Sacketts, now being considered equitable owners, performed their part of the oral agreement and therefore the Statue of Fraud would not be a valid defense in this case. The courts ruled in Favor of Sackett to avoid injustice. (Briggs v. Sackett, 1980) In the Case of PG&E v. Bear Stearns and Company, PG&E would win the case. This case is a perfect example of a tort with intentional interference with contractual relationships. PG&E had a valid contract, Bear gained knowledge of the contract in1990 and told Agency that they would help them terminate their contract with PG&E. The court found that Bear did not have cause of action to bring forward the lawsuit against PF&E and there wasn’t any probable cause on behalf of PG&E that made the contract more expensive or caused any burden to Bears. The court ruled in favor of PG&E alleging that the defendant did not have probable cause. (Pacific Gas and Electric Company v. Bear Stearns & Company, 1990) In the case of f Gulash v Stylarama, the judge would rule in favor of Stylarama. At the time they signed the contract there was not an indication as to whether the contract was for good or for service. Because the breakdown of the cost of the contract was not provided a determination...
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...from all walks of life every day, including family members, bosses and colleagues amongst others, in order to acquire the maximum interests for ourselves. Negotiation is an easy thing to do when it is only restricted to numbers, because it doesn’t require trust, language and relationship. Fingers alone can solve everything. Our task as a businessman, however, is to negotiate for terms and conditions on the side we stand, which is quite demanding in language precision, communication skills and so on. From different types of negotiations and the history of negotiation methods, we realize that tactics used in ancient wars have been applied in current business battles. The outcome of negotiations does not only have a win/lose situation, but also have a win/win one when reaching a consensus. Case practice: In the “Weekend in Paris” case, I practiced as a buyer who is urgent to get the ticket to Paris. I came up with my first offering at 45, which is the original price stamped on the ticket. Then the seller responded a 125, the full price of the ticket. I stood my ground and said to the seller that your ticket will be worth nothing if it’s expired, and by selling the ticket at 45 will not cause you any losses. However, the seller insisted a 125, saying that you...
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...First I would like to thank you for your consideration and wanting to use the research I have collected over the time in my work and studies in China. I am confident that I can supply the needed knowledge for the future negotiations to help provide a win-win for both parties. I do agree that using a middleman would be a wise choice to help with the negotiations. Etiquette and social customs must be studied, understood and followed when wanting to have a successful outcome of any business meeting between multicultural individuals. Before even staring negotiations one must understand the Chinese culture and how they function and think as a people. Two thirds of Chinese live in rural areas and are raised with a strong respect to harmony, social obedience and hierarchy within families and business. Their belief of the yin and yang, meaning the passive and active seeks to encourage compromise by allowing both sides to maintain their stand point yet still coming to an end result. This is why proper negotiations are so important. Another important fact to understand is that the Chinese language is a sequence of images and not words like we are custom to in the United States, therefore they think in a more holistic way and put a lot of concentration on the bigger picture. Because of years of conflict between nations and inter cultural issues they are stand offish with strangers especially westerners. Because of their strict hierarchy it is...
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