...A contingent fee (in the United States) or conditional fee (in England and Wales) is any fee for services provided where the fee is payable only if there is a favourable result. In the law, it is defined as a "fee charged for a lawyer's services only if the lawsuit is successful or is favorably settled out of court.... Contingent fees are usually calculated as a percentage of the client's net recovery."[1] In the English legal system, it is generally referred to as no win no fee. A conditional fee agreement between a law firm and a client. The usual form of this agreement is that the solicitor will take a law case on the understanding that if lost, no payment is made. However, if the case is won, the lawyer will be entitled to the normal fee based on hourly billing, plus a success fee. The success fee in England must be as a percentage no greater than 100% of the normal fee. This contrasts with the contingency fee in the US, which gives the successful attorney a percentage of the damages awarded in favor of his client. This makes it easier for the poor to pursue their civil rights since otherwise, to sue someone for a tort, one must first be wealthy enough to pursue such litigation in the first place. However, because of the high risk, few attorneys will take cases on a contingency basis unless they feel the case has good merit. According to a 2004 book by law professor Herbert Kritzer, contingent fees were allowed as of that year in the following countries: Australia...
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...Case Study 2 Jasmine Howard Liberty University Case Study 2 Part I Kaiser Manufacturing Company has been in business for over 50 years using the standard method staffing. Hiring its own employees, training, managing and all human resources issues were all handled in house. The option is now arising to use an employment agency, FSS, to relieve the burden from Kaiser Manufacturing Company. It is important to weigh the advantages and disadvantages of this option before changing the entire business plan Kaiser Manufacturing Company has worked so long. The advantages include, flexible staff numbers, as of current Kaiser Manufacturing Company has a workforce of 725 production workers, 30 clerical workers, 32 engineer and professional workers, and 41 managers, who are all full time employees. This number was a perfect fit for the company when the sales were at an all-time high but as of 2008 the sales have stayed at 175 million annually. Cutting back on the cost of the workforce would be very beneficial to Kaiser Manufacturing Company’s bottom line. If and when sales are to peak or employees call out it is great to have the option to bring in more employees or decrease the number of employees staffed when necessary without adding more work to management. A second advantage would be the caliber of workers available to the company. Though the current workers are adequate to keep the business running, it may be advantageous to bring in someone temporary to help understand why...
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...1. Under what circumstances, if any, is signing a merger or acquisition agreement with a go-shop clause an effective substitute for a pre-signing market check by the seller? 2. Under Revlon duties, directors are expected to take steps to obtain the best transaction reasonably available for the stakeholders. The Delaware Supreme Court has stated, “there is no single blueprint that a board must follow to fulfill its [Revlon] duties” (citation). After the Smurfit-Stone case, it became clear that board did not need to do a pre-signing market check to fulfill their fiduciary duties. Therefore, “go-shop” provisions have been used more often in place of pre-market checks. Go-shop clauses are a provision that allows the target company to solicit competing proposals for a certain amount of time after they have signed an agreement with the potential buyer. The advantages of the “go-shop” are that it decreases the amount of time until closing as the agreement is already in place, sets a “floor value” which the seller can canvass the market, and provides a “break-up” fee to the potential buyer if they are outbid. The seller usually has a bifurcated fee structure with a lower termination fee payable through the go-shop clause. If there is a reduced termination fee, it may generate more interest than a “no-shop” provision, and potentially more offers. From the seller’s perspective, a go-shop clause may be favored if there are risks during an auction such as lower than expected price...
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...Lastly, I will analyze and recommend a new business entity that would fit the needs of Acme Fireworks going into the future. Governed by Common Law or UCC Common law “emphasizes the making of rules through court decisions” (Rogers, 2012). The court will base their decisions on prior cases with similar legal issues. The Uniform Commercial Code (UCC) is “a summary of traditional common law rules governing commercial transactions” (Rogers, 2012). Since the UCC governs contracts between businesses, I believe that the UCC would be the organization that would enforce the contracts between Acme Fireworks and the other large businesses. Five Essential Elements of a Contract A contract is formed when two or more parties come to a mutual agreement regarding the terms of the sale of goods, services rendered or any other legal transaction (Rogers, 2012). The first required element of the contract is that it is mutually agreed upon. In order for something to be agreed upon an offer must be made. The offer may “be made to a person, a class of people, or to the whole world” (Law Handbook, 2015). The owner of Acme Fireworks was contacted by several large businesses inquiring if Acme could create several fireworks displays on a regular basis. Therefore, the offer in this case came from the large...
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...or does not exist, regard shall be had to the following rules- (1) Joint tenancy, tenancy in common, joint property, common property, or part ownership does not of itself create a partnership as to anything so held or owned, whether the tenants or owners do or do not share any profits made by the use thereof. (2) The sharing of gross returns does not of itself create a partnership, whether the persons sharing such returns have or have not a joint or common right or interest in any property from which or from the use of which the returns are derived. (3) The receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business, but the receipt of such a share, or of a payment contingent...
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...alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan. CURRENT SITUATION Stakeholders Preferences: * Go franchising (Paul) * Enhance vegetarian menu (Sam) * Preserve quality and control (Sam) * Realize $1.1M net income by 2015 (both Paul and Sam) *Avoid using line of credit (both Paul and Sam) Constraints: * Cash * One supplier of all store requirements/ingredients * Bank requires $20,000 minimum cash balance at any given time * Number of hours work * Working space Environmental Scan : SWOT Analysis Exhibit 1 Current Financial Assessment - Lowest profit of .29% compared to industry wide due to $500,000 contingent liability booked in 2012. Removing this extraordinary item would result to 24% operating income which is higher than Dawkins industry benchmark - 52.93% highest Contribution margin than industry average - High growth % versus set by the industry - Available line of credit -Impressive performance among competitors whether franchising or non-franchising -Debt free Key Success Factors: * High-quality traditional custom-made sandwiches developed through generations *Loyal client base and recognition * Effective obsolescence plan * Zero Debt Key Risks: Losing market share and...
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...alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan. CURRENT SITUATION Stakeholders Preferences: * Go franchising (Paul) * Enhance vegetarian menu (Sam) * Preserve quality and control (Sam) * Realize $1.1M net income by 2015 (both Paul and Sam) *Avoid using line of credit (both Paul and Sam) Constraints: * Cash * One supplier of all store requirements/ingredients * Bank requires $20,000 minimum cash balance at any given time * Number of hours work * Working space Environmental Scan : SWOT Analysis Exhibit 1 Current Financial Assessment - Lowest profit of .29% compared to industry wide due to $500,000 contingent liability booked in 2012. Removing this extraordinary item would result to 24% operating income which is higher than Dawkins industry benchmark - 52.93% highest Contribution margin than industry average - High growth % versus set by the industry - Available line of credit -Impressive performance among competitors whether franchising or non-franchising -Debt free Key Success Factors: * High-quality traditional custom-made sandwiches developed through generations *Loyal client base and recognition * Effective obsolescence plan * Zero Debt Key Risks: * Losing market share...
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...of funding for businesses. For example, these loans can be structured either as short- or long-term, fixed or floating rate, demand or with a fixed maturity, and secured or unsecured. While each potential borrower's business is unique, reasons to borrow generally include the purchase of assets including new fixed assets or entire businesses, repayment of obligations, raising of temporary or permanent capital, and the meeting of unexpected needs. Loan repayment generally comes from one of four sources: operations, turnover or liquidation of assets, refinancing, or capital infusion. This note describes traditional bank lending products, the role of the lending officer, credit evaluation, and the structuring of credit facilities and loan agreements. Specialized loan and credit products are described in Appendix A. Traditional Commercial Bank Lending Products While increased competition has forced banks to develop innovative credit facilities and financing techniques, traditional products, which include short-term, long-term, and revolving loans, continue to be the mainstay of commercial banking. Short-Term Loans Short-term loans, those with maturities of one year or less, comprise more than half of all commercial bank loans made. Seasonal lines of credit and special purpose loans are the most common short-term credit facilities. Their primary use is to finance working capital needs resulting from temporary build-ups of inventory and receivables. Reflecting their use, repayment...
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...or failure of the business is solely contingent on the owner’s actions not those of partner’s or shareholders. In addition, a sole proprietorship is not taxed at the corporate rate instead profits and losses are reported on schedule C of the owner’s personal tax return. Completing a schedule C, income statement, and balance sheet for a sole proprietorship is less complicated than completing partnership or corporate tax returns. Sole Proprietorships Sole proprietorships are the easiest form of business to set up and operate and are not subject to state or federal government approval, however, some local governments require business’s to obtain a license to operate. Advantages of sole proprietorships include ease and low cost, the owner makes management decisions, has exclusive use of all profits, and the business can be liquidated without approval from a partner or shareholders. Disadvantages include limited capital, sole liability for all business contracts and possible torts that may be incurred as a result of negligence by employees. Also as a sole proprietor all capital used to start the business will be lost if the business fails and creditors may attach the owners personal assets to settle outstanding business debts (Cheeseman, 2010). Partnerships Partnerships are formed by two or more individuals who desire to conduct a for-profit business and share the profits. The partners will draft a partnership agreement outlining the partner’s duties and his...
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...------------------------------------------------- CHAP 19 When a company issues securities to the general public, it usually uses the services of an investment banker who underwrites (purchases at a fixed price on a fixed date) new securities for resale. For this service, investment bankers receive the difference, or underwriting spread, between the price they pay for the security and the price at which the security is resold to the public. There are three primary means by which companies offer securities to the general public: 1) Traditional (or firm commitment) underwriting If the issue does not sell well, either because of an adverse turns in the, market or because it is overpriced, the underwriter, not the company, takes the loss. They compensated the risk-bearing function through the underwriting spread Competitive-bid: the issuing company specifies the date that sealed bids will be received, Competing syndicates submit bids, and the syndicate with the highest bid wins the security issue. Negotiated Offering: The issuing company selects an investment banking firm and works directly with the firm to determine the essential features of the issue.Together they discuss and negotiate a price for the security and the timing of the issue.Depending on the size of the issue, the investment banker may invite other firms to join in sharing the risk and selling the issue.Generally used in corporate stock and most corporate bond issues. 2) Best efforts offering ...
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...Software Revenue Recognition A Roadmap to Applying ASC 985-605 Third Edition December 2011 Subtopic 985-605, Software—Revenue Recognition, from the FASB Accounting Standards Codification®, is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission. SOP 97-2: Copyright 1997–2009 by American Institute of Certified Public Accountants, Inc. Used with permission. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and Deloitte Financial Advisory Services LLP, which are subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting...
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...Executive Summary The report analyzes three options to record the transfer of the in process research and development project Drug X from Bust-a-Knee to Pharmers. Based on the analysis, we recommend Options #3 as the approach to record the journal entries at the date of transfer. The first option records the acquisition of Drug X and OuchX into an intangible account -- “ownership”. In the case of transfer ownership of the IPR&D of Drug X from Brust-a-Knee to Pharmers, Brust-a-Knee receives $2 million cash and incurred $2 million loss. The disadvantage of treating the $2 million loss into the expense account of Drug X is there may be future economic benefits for Brust-a-Knee to sell Drug X because the estimated revenue is $5.5 million. The second journal entry records increase of cash and revenue by $4 million, increase of cost of goods by $4 million and decrease in IPR&D account by $4 million. The second option shows changes in asset from IPR&D to cash as well as a matching revenue and expense caused by the transaction. However, the second journal entry does not consider the future possible $3.5 million profit by selling Drug X as well. The major difference between Option#3 and the other two options is that the $3.5 million is counted as the sales revenue at the date of transfer because it is highly possible for Bust-a-Knee to receive the future economic profits. Since Pharmer is the market’s largest pharmaceutical company, its technology and marketing skills...
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...A Comparative Analysis of Strategy versus Tactics In the Negotiation Process HR595 Negotiation Skills Instructor: Professor C. Butler June 18, 2011 Sammie L. Brookins drsammiebrookins@aol.com Introduction “Behold, I send you forth as sheep in the midst of wolves: be ye therefore wise as a serpents, and harmless as doves,” Matthew 10:16. This Scripture from the Holy Bible sets the parameters in the negotiation process. It shows the intensities of the parties because sheep and wolves are known enemies. Many times when we enter into the negotiation process, we feel as though we are enemies to the other party. What many of us fail to realize is that we reach many decisions through negotiation every single day without as much as a single thought? Our basic definition for this paper is that “Negotiation means to confer with another person so as to arrive at a settlement of some matter; also to arrange for or bring about such conferences” (Merriam-Webster Dictionary). This paper will focus on the attributes that affect the choice of negotiation strategy, including both short and long-term thinking relative to the consequences, how to frame goals and the importance of the continuing relationship with the other parties involved after the negotiation process has ended. It is common knowledge that negotiation occurs in a series of steps or processes that are conclusive of many contractual principles, many of which are commonplace in daily routine. Offer, acceptance...
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...Wills, Trusts, and Estates FIN 4004 Spring, 2013 CRN 13341 (MW 4:00-5:15pm) Jason Bryan Malone, Esq. 2117 Pamplin Hall Email: jbmalone@vt.edu Office Hours: MW 12:10pm-1:10pm (Additional hours will be posted on Scholar throughout the semester) (Please feel free to make an appointment or come by during other times) Text: Estate Planning for Financial Planners, 6th ed., Michael A. Dalton and Thomas P. Langdon Course Description: Estate Planning focuses on the efficient conservation and transfer of wealth, consistent with the client’s goals. It is a study of the legal, financial and non-financial aspects of this process, covering topics such as trusts, wills, probate, advanced directives, charitable giving, wealth transfers and related taxes. Course Objectives: At the end of this course, the student should be able to understand, explain, analyze and evaluate estate planning needs and taxation in order to recommend appropriate techniques for meeting estate planning and objectives, including without limitation: • Determine client estate planning needs and objectives, taking into account financial and non-financial (behavioral/social/emotional) aspects of estate planning • Understand the effects of the lack of estate planning, including state laws of intestacy • Project estate taxation and liquidity needs in various situations • Recommend appropriate and efficient methods of wealth transfer for a client’s situation, including...
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...are legally protected entities that organize employees and bargain with management to establish terms and conditions of employment via a labor contract. About 12% of the labor force is unionized, with 7.4% unionization in the private sector and 36% in the public sector.14 Trends suggest a continued decline in private sector unionization as well as an increasing level of public sector unionization.15 Labor and management are required to bargain in good faith to try to reach agreement on the contract. Many staffing issues may be bargained, including staffing levels, location of facilities, overtime and work schedules, job descriptions and classifications, seniority provisions, promotions and transfers, layoffs and terminations, hiring pools, KSAO requirements, grievance procedures, alternative dispute resolution procedures, employment discrimination protection, and, very important, pay and benefits. Virtually all aspects of the staffing process are thus affected by negotiations and the resultant labor agreement. Labor unions thus have direct and powerful impacts on staffing and other HR systems. Even in nonunion situations the union influence can be felt through "spillover effects" in which management tries to emulate the pay and benefits, as well as staffing practices, found in unionized settings. HUMAN RESOURCE PLANNING Human resource planning (HRP) is a process and set of activities undertaken to forecast an organization's labor demand (requirements) and internal labor...
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