Essay on Contracts Example | Topics and Well Written Essays - 1000 words

On Contracts - Essay Example A valid offer may thus be made orally, in writing or by conduct. In the scenario, a question arises on when a valid offer was made by either party. Was it made by the brochure advertising the vehicle and its price? Or was it made by peter when he wrote to the sales company reserving a new Vectra 2.0i, Corsican Blue, for the price of ?15,749? An offer must be distinguished from an invitation to treat. An invitation to treat is generally a negotiation on in which a seller of a commodity gives the price of the commodity, not as offer that is capable of acceptance by the buyer, but rather as an invitation to conduct further negotiations on the price of the commodity. This means that if a seller of a commodity posts the price of a given commodity on the commodity itself, newspaper, brochure, or on a shelf, this amounts to an invitation to treat rather than a valid offer capable of acceptance by the buyer when he/she presents the item to the seller2. In the case of Pharmaceutical Society o f Great Britain v. Boots Cash Chemists3 the court considered the question whether the price of the goods displayed in a chemist amounted to an offer made to the buyer upon which he accepts when he picks the goods from the shelves and put them in a shopping basket. The court held that if that was the case, a customer who picks the goods from the shelves cannot be able to return them. Instead the goods on the shelves were merely invitation to treat, and the sale agreement was complete upon the cashier accepting payment for the goods. The same rule applies in regard to advertisements, which are generally interpreted by the courts to be merely invitations to treat. In the case of Partridge v. Crittenden4 the defendant had placed advertisements on the classified section of magazines advertising the sale of bramble finches, whose sale had been prohibited by Section 6 of the Protection of Birds Act. He was found guilty under the Act and so he appealed the decision of the trial court. The A ppellate court, in quashing the appellant’s sentence, held that the advertisements were merely invitations to treat as opposed to an offer. This view was upheld by the court in Fisher v. Bell5 where the court held that the display of a flick knife in the display of a shop was merely an advertisement of the good, and thus an invitation to treat. From the foregoing, the brochure obtained by peter containing the car’s description and price was merely a form of advertisement for the car. It did not amount to an offer in any way, but was merely an invitation to treat for the company’s customers. However, there was a valid offer from Peter to the company’s sales department through his written letter to the company indicating his willingness to purchase a Corsican blue Vectra 2.0i vehicle. It is a universally accepted principle of law that acceptance must coincide fully with the terms of an offer. This means that if new terms are introduced to the contract, or r ather if new terms are purported to be introduced, acceptance of such new terms will be considered as a counter offer which results in the rejection of the offer. In the case of Hyde v Wrench6 the plaintiff offered the respondent to him his land for $1000 and he refused. In his reply, he stated that he would pay $950 and the respondent refused. The plaintiff later wrote to the respondent accepting to pay the initial sum but the respondent re

Corporate Governance Essay Example | Topics and Well Written Essays - 2000 words

Corporate Governance - Essay Example Such an argument is made with specific reference to the role that companies play in the social and economic lives of the society at large. The governance of corporations is also debatable at governmental level as per the political powers they may exercise and the world wide reach of the business in the globalized economy. Governments are taking keen interest in the governance matter of the companies not only to secure the national economy and shareholders rights but also to protect the global share of the country in the international markets. On the other hand, the finance providers including the individuals, banks, financial institutions and governments (in their role as investor) seek guarantee that their resources are being utilized in an efficient manner and create sufficient profits for them. This guarantee or assurance leads to the necessity of good corporate governance in place. In other words we can say that good corporate governance leads to increased shareholder trust and a ttracts potential investors due to the assurance that their resources will be secured (Macey 2008). Corporate governance can be defined in a number of ways. ... The main idea is the governance of corporations with an aim to increase stakeholder trust and confidence in the company’s operations, strategies, outputs and practices. Such a system of running businesses lead to the compliance with legal, constructive and social obligations which further enhances the credibility of the corporation in terms of gaining trust and assurance of the stakeholders (Monks & Minow 2004; Ali & Gregoriou 2006). Economic Reasons The corporations are governed by the directors through the managers and lower level staff, however, shareholders holds the directors accountable for the matters concerning the businesses. Corporate governance should be a matter of shareholders as their investments are at stake with the business’s reputation, operations and governance. Shareholders need an assurance of the security of their shareholdings. The returns that the business generates are eventually distributed among the shareholders. The governance of a corporatio n, hence, is of immense importance to the shareholders in terms of the economic benefits it may bring. Alternatively, any inappropriate action or decision taken by the directors held them accountable to the shareholders. Friedman (1962) suggests that the shareholder theory claims that corporation decisions should be made to enhance the value of shares to increase returns for the shareholders. Further, the agency relationship that exists between shareholders and directors may form the basis of good corporate governance practices, whereby, directors act as agents to the shareholders. In other words, the corporate governance codes and practices, as per the

Theory of Absolute Advantage | Analysis

Theory of Absolute Advantage | Analysis Introduction In response to the mercantilism system which dominated economics thought in the 18 century, Adam Smith introduce and gives extension discussion of absolute advantage theory in international trade and illustrate what to do if countries do not stick to the rule and maxim of international trade in An Inquiry into the Nature and Causes of the Wealth of Nations. Adam Smith prove wrong the belief of international trade between country was zero sum game which means the gaining of a country from international trade was the loss of other country. In additional, the international trade was positive sum game which means countries will gain benefit from trades. In the illustration of absolute advantage theory, Adam Smith illustrate that a country which have absolute advantage over other country if its production capacity in goods and services is greater when using same amount of resources or its produce a good using fewer resources (lower opportunity cost). Adam Smith also says that a country should produce goods where its production capacity is the most efficient and trade those goods where its production is not efficient. In additional, absolute advantage theory can also applies in the regions, cities and firms and tariffs and quotas should not restrict international trade. Adam Smith says the labor is fixed and homogeneous within a country. In additional, he also considers the labor is the only factor of production (input) and technology and production cost is constant in absolute advantage theory. He also illustrate that transportation cost are zero and countries use barter trade system in trading. In conclusion, Adam Smith absolute advantage theory replaces the mercantilist idea and questions the objective of national governments which applies mercantilist idea and acquires wealth through restrictive trade policies. In additional, absolute advantage theory also measure a country wealth through the living standard of its people. Theoretical background and Issues In absolute advantage theory, there are issue which is do all countries have an absolute advantage. Adam Smith does not consider the question if every country has an absolute advantage in the production of some goods. From a theoretical point of view, it could be possible that a country has no absolute production advantages or might lose them over time. Adam Smith’s theory suggests that absolute advantages develop as a consequence of trade and trade might be the incentive ways that leads to the creation of absolute advantages. However, nowadays, international trade is widely spread and the countries do not start equally. Rather, some countries are less productive and poorer. They might have an absolute advantage in those goods which only they are able to produce because of natural environment or condition. But those goods constitute only a small fraction of all traded goods. Smith gives another possibility for less productive countries to have an absolute  advantage. He states that poor countries might be able to compete in the agricultural sector with rich, more productiv e countries. Smith’s reaches this conclusion by state that the division of labor does not equally increase in all sectors of production and that wage levels differ internationally. Another issue in absolute advantage theory is how the trading between developed countries that have an equally high level of development using absolute advantage theory. Unlike the theory of comparative advantage, which is complemented by intra-industry trade theory, Adam Smith’s absolute advantage theory can also help to understand trade between developed countries. Firms in developed countries produce similar industrial products and compete over profits and market shares. Trade and success is determined by absolute production advantages which means that ‘art and skill’ (technology and education of the workers) play a significant role. Since this competition exists domestically there is no reason why this kind of competition should not exist internationally; especially because Adam Smith’s theory does not have a basic difference between domestic and international trade. An additional gain is technology transfer or international learning. Developed countries benefit from it to a greater extent than underdeveloped countries since they are able to make use of technological developments. This can explain, for example, why the technological level of Europe and North America has converged in fifty year. As a result, a rich country benefits more from trade with another rich country than from trade with an underdeveloped country. Discussion: Adam Smith’s Absolute Advantage Theory To illustrate the theory of absolute advantage, presume that there are two countries (China and Germany), producing just two products (rice and cars). Assume that products are tradable without workers and costs are not moving between the two countries, but moving between the two sectors within a country. All workers are equally productive and as the only input in a country. Production technology in China differs from that in Germany (see table below). Suppose that to produce 1 unit of rice, Germany requires 3 units of labor meanwhile China requires only 2 units of labor. Similarly, to produce 1 car, Germany needs 6 units of labor while China needs 8 units of labor. As the result, China is more efficient in the rice production and Germany is more efficient in the cars production. Therefore, China has an absolute advantage in the rice production and Germany has an absolute advantage in the cars production. To illustrate that specialization of production, coupled with international trade flows according to the theory (absolute advantage), can be profitable. In our example, presume that China produces less 1 unit of car yet this save up 8 units of labor so, now the labors can be used to produce 8/2=4 units of rice (opportunity cost of car production in the China). China has now produced extra 4 units of rice although produced less 1 car. Suppose that China must import 1 car from Germany if China wants to consume the same amount of car s like before. Germany needs 6 units of labor to produce this car. Thus, rice production drops by 6/3=2 units of rice (opportunity costs of car production in Germany) as these laborers must bring in from the rice sector. Now note that the total production of rice has increased by 2 units (4 units more in China and 2 units less in Germany), while the total production of cars remain unchanged (1 car less in China and 1 car more in Germany). In conclusion, these extra units of rice show the potential gains from specialization if China and Germany focused on the production of the product which they can produce most efficiently. Both countries can gain benefit from the theory, when they exchange 3 units of rice for 1 car. Argument: Is theory of absolute advantage best describes international trade? Absolute advantage refers to a country’s ability to produce a certain good more efficiently than another country and it has three main arguments. First, it argues that regulations favoring one industry draw away real resources from another industry where they might have been more advantageously employed. Second, it mentions the important of specialization in a society. When someone has some advantages in produce or provides a good or services, he or she needs to specialize in the production. Third, specialization needs to be practice in international commercial policy and nations. It is better when a country is allows to focus on production of goods that it has absolute advantages and then import goods that other countries have absolute advantage. Theory of absolute advantage provides a clear and simple view on international trade and helps country decide what to produces, import and also export but it has some drawback since it fails to explain why free trade can be advantages when one country has absolute advantage in producing all the goods. How would a country without having any absolute advantage in producing any good, join and gain from free trade with other countries. How will this country pay for its imports because it will produce nothing that is cheaper to produce as compared with other countries? This theory ignored to explain how differences in climatic conditions and natural resource can contribute to comparative advantages. Some country has no absolute advantage in all good cause by limited resources and technology may excluded in international trade market and consequently, it will lead to conflict in allocate resources in that particular country and insufficient in production. Theory of absolute advantage focuses on which country can product good by using lesser resources. If there is no trade between countries, then the prices of good will indicates by its resources cost in each country. The difference in prices with no trade will reach an equivalent price with each good being exported from the initially low-price country and imported by the initially high-price country. Smiths approach does not indicate what would happen if the same country had absolute advantage in both products. The theory of comparative advantage introduces by David Ricardo has solve this problem as it do not considers cost in production but opportunity cost. A country will trade in the pattern that maximizes its advantage. Next, absolute advantage fails to illustrate the real situation in international market because of some assumption. First, it does not take transportation costs involved in selling the product into account. For instance, if product is exchanging between China and German, the transportation cost may cause the price even higher than the original price without trade because of long distance. Besides, Adam Smith assumes that exchange rates are stable which the case is seldom and hence it is a limitation. Furthermore, it also assumes that labor can switch between products easily and they will work with same efficiency which in reality cannot happen. In conclusion, we do not think that theory of absolute advantage by Adam Smith best describe international trade in today world. This is because it fails to explain the condition of country that does not have any absolute advantage. In addition, assumptions that not fit to reality like ignore transportation cost, use stable exchange rates and assume same efficiency between labors causes it is not accurate. Recommendation A country with absolute advantage can produce a good at lower marginal cost (fewer materials, cheaper materials, in less time etc.) This means that, the country should implement specialization in the production of such goods. Specialization of good can be made by Research and Development which leads to improvement of existing products or procedures. For example, to increase the Agricultural productivity Scientist such as Biologist and Chemists will need to develop technologies which may eventually lead to more production. For example, if a country has an absolute advantage on producing wheat, farmers of that country has to balance the environmental concerns to meet the need in a sustainable way. In overall, Research and Development helps the countries with absolute advantage to specialize and maximize the productivity. This benefits the countrys economics state. Next, a country in absolute advantage should carry out trade. This is because a country can produce goods more than its need. Therefore they should trade the goods with other countries. The trade can be goods for goods or goods for money. When the country is carrying out goods for goods trade it can acquire goods which it cant produce in its country and vice versa. On the other hand, goods for money trade allow the country to strengthen its economic state and grow further. Conclusion In a nutshell, absolute advantage creates many benefits for a country. However, there are certain limitations to this theory that a country will have to face. Firstly, it does not consider the transportation cost of moving the products from one country to the other. This is because, transportation cost are counted in final selling price of the product. As transportation cost is also a factor in production price sometimes trading can be a loss to a country. Next, the theory also assumes that exchange rates are stable which in reality it is seldom. In the current economic world exchange rates changes rapidly. This can cause major loss to some country if they trade in a wrong time. This is because exchange rates play a major role in trade market. The next limitations are, labors also cannot switch between products and they won’t be able to work with same efficiency. Some labors will only have a few working skills and training which cannot be used to produce variety of goods. So, even though absolute advantage gives many benefits to a country but it also have some negative sides which a country will have to encounter and tackle it effectively.

College Student Loans Skyrocket Essay -- essays research papers

If you're counting on government student loans to get you through college or graduate school, count on paying them back. The Education Department has become one of the toughest debt collectors around. Over the past decade, the agency has steadily expanded its arsenal for dealing with former students who don't repay. A 1998 change in federal law made it extremely difficult for people to escape student loans through personal bankruptcy. The Education Department also can now seize parts of borrowers' paychecks, tax refunds and Social Security payments without a court order, a power similar to the IRS's. Access to a government database of newly employed workers has enabled the department to make much more effective use of private collection agencies. And it can go after even decades-old student loans, because there's no statute of limitations on them, unlike most consumer debt. As a result, the Education Department collected $5.7 billion in defaulted student loans in the past fiscal year, more than twice as much as in 1998. For current loans that go into default, the department now projects it will ultimately retrieve every dollar of principal, plus almost 20% in fees and overdue interest. The aggressive approach has sparked an outcry from some borrowers, consumer advocates and even some bankruptcy-court judges. They complain that the department runs over some former students who have suffered reversals of fortune. Some who favor a softer stance argue that student loans are ...

Contemporary Issues of Management Accounting Essay

This allows the opportunity for them to hone their skills and abilities at a constant rate while offering numerous benefits to the company. These benefits manifest themselves in employee loyalty, low turnover costs and fulfilment of company goals. Figure 6: JIT Model * Some Key Elements of JIT: 1. Stabilize and level the MPS with uniform plant loading (heijunka in Japanese): create a uniform load on all work centers through constant daily production and mixed model assembly (produce roughly the same mix of products each day, using a repeating sequence if several products are produced on the same line). Meet demand fluctuations through enditem inventory rather than through fluctuations in production level. Use of a stable production schedule also permits the use of backflushing to manage inventory: an end item’s bill of materials is periodically exploded to calculate the usage quantities of the various components that were used to make the item, eliminating the need to collect detailed usage information on the shop floor. 2. Reduce or eliminate setup times: aim for single digit setup times (less than 10 minutes) or â€Å"onetouch† setupthis can be done through better planning, process redesign, and product redesign. 3. Reduce lot sizes (manufacturing and purchase): reducing setup times allows economical production of smaller lots; close cooperation with suppliers is necessary to achieve reductions in order lot sizes for purchased items, since this will require more frequent deliveries. 4. Reduce lead times (production and delivery): production lead times can be reduced by moving work stations closer together, applying group technology and cellular manufacturing concepts, reducing queue length (reducing the number of jobs waiting to be processed at a given machine), and improving the coordination and cooperation between successive processes; delivery lead times can be reduced through close cooperation with suppliers, possibly by inducing suppliers to locate closer to the factory.

A Critical Feminist Theory of Advertising Art Free Essay Example, 3500 words

This theory is based on the assumption that women tend to compete intrasexually with other women in the search for a superior long-term mate. Because of this, women would do anything, including enhance their physical appearance, to be attractive to men. As such, women patronize products and services meant to take care of their face and body to have better chances at mate selection. Thus, intrasexual competition should be one of the feminist theory’s major considerations in trying to propose strategies for the woman’s well-being. It is possible that women themselves have placed too much importance on their physique that they have been labeled vain or â€Å"brainless† by some critics. In this case, feminists should advocate that the woman is not all about the looks but the emotional intelligence as well. III. THE WOMAN UNDER THE ADVERTISING SPOTLIGHT A. Images of the Woman in Advertising Art Works It is indeed very interesting how advertising art reflects the woman at different times of the era. The one above is a 1930’s Lucky Strike cigarette ads from Art Deco Blog. We will write a custom essay sample on A Critical Feminist Theory of Advertising Art or any topic specifically for you Only $17.96 $11.86/pageorder now It is apparently encouraging women to smoke the cigarette to maintain a slender figure. I believe that this ad expresses a woman’s desire to have a slimmer body while advertisers aim to reach the vast female market. However, this also shows the woman in a very negative light as if women in general wouldn’t care about the adverse health effects of smoking as long as they will look good and sexy. This ad reinforces the subjective ideal that slim is beautiful and fat is ugly. These further results in women thinking, that if they ever have a little bit of flab, they are already undesirable. In fact, Bordo has identified that â€Å"the central contradiction of the system inscribes itself on our bodies, and bulimia emerges as a characteristic modern personality construction (qtd. in Littlewood 115). This means that instead of encouraging women to stay fit and healthy, it only pushes for attaining and maintaining slimness through means that may not even be psychologically sound. On the other hand, it is in this light that Dove launched the campaign for real beauty online (Altstiel and Grow 62). Its goal is to clarify issues about what real beauty is and to direct consumers to develop a higher self-esteem. This Dove ad in particular shows a teenager with an average body size who may be thinking she is fat. It is quite effective as a work of art as it displays the feminist reality that young women hold incorrect beliefs and perception about themselves.

Mall Goers - Free Essay Example

Sample details Pages: 1 Words: 442 Downloads: 4 Date added: 2017/09/12 Category Advertising Essay Did you like this example? Mall Goers Just what goes into â€Å"having fun†? For many people, â€Å"fun† involves getting out of the house, seeing other people, having something interesting to look at, and enjoying a choice of activities, all at a reasonable price. Going out to dinner or to the movies may satisfy some of those desires, but often not all. But an attractive alternative does exist in the form of the free-admission public mall. Don’t waste time! Our writers will create an original "Mall Goers" essay for you Create order Teenagers, couples on dates, and the modest family can all be observed having a good time at the mall. Teenagers are drawn to the mall to pass time with pals and to see and be seen by other teens. The guys linger wearing their Nike tennis shoes, graphic T-shirts, name brand jeans, complete with their hat cocked to the side. The girls sashay thru wearing their high-heels shoes, revealing tank tops, with their arms full of bracelets wrapped around shopping bags. Traveling in a gang that resembles a wolf pack, the young thunder cats make the mall their hunting ground. Mall administrators have obviously made a decision to attract all this teenage activity. The kids’ raised voices, loud slang, and occasional shouted obscenities can be heard from as far as half a mall away. They come to â€Å"pick up chic,† to â€Å"meet guys,† and just to â€Å"hang out. Couples find fun of another sort at the mall. The young lovers are easy to spot because they walk hand in hand, stopping to sneak a quick kiss after every few steps. They first pause at a jewelry store window so that they can gaze at diamond engagement rings and gold wedding bands. Then, they wander into perfu me departments in the large mall stores. Finally, they drift away, their arms wrapped around each other’s waist. Then there are the Smiths, who visit the mall on Saturday morning and Sunday afternoon for inexpensive recreation. Hearing the music of the trains and video games, the daughter begs to ride in the red cart. Shouting â€Å"I’m Starving! † Jr. drags the family towards the food court, where he detects the seductive odor of pizza. Mom walks to the women’s clothing store, trying on anything she thinks she can fix. Meanwhile, Dad has wandered into the electronics and is testing out all the new technology asking questions on how things work. The Mall provides something special for every member of the family. Sure, some people visit the mall in a brief, short way, just to pick up a specific purchase or two. But many more are shopping for inexpensive recreation. The teenagers, the dating couples, and the simple family all find cheap entertainment at the mall.