...Essay Answer Guide on Strict Compliance (Qn 3 2009 (B)) ‘The strict compliance rule in relation to letters of credit does not require exact literal compliance in all circumstances and as regards all documents. The bankers is, therefore, required to exercise judgment whether the requirements has been fulfilled.’ Discuss. The use of letter of credit is the most common way of financing in an international sales agreement. Donaldson LJ in The Bhoja Trader had even seen it as “the lifeblood of commerce”. The documentary credit system (DCS) is useful in that it gives sellers greater assurance of being paid for goods supplied while allowing buyers to open a line of credit and facilitating effective payment. Before releasing payment though, the bank would have to ensure that documents tendered by the seller strictly comply with the buyer’s mandate. This strict compliance approach will protect the buyer’s interests. The doctrine of strict compliance has been justified in the context of commercial letters of credit on two grounds. First, on principles of agency (and contract) law, where the issuer must act within the mandate given by the applicant and obtain documents which comply strictly with the applicant’s instructions. Documents which go outside the mandate do not entitle the issuer to reimbursement. Secondly, the doctrine ensures that the issuer obtains documents which are commercially marketable and can be used in case the goods are lost or destroyed. The aim...
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...Riordan Manufacturing, Inc. Corporate Compliance Plan Law 531 January 24, 2012 Prof. Dunn MBA, JD Riordan Manufacturing, Inc. Corporate Compliance Plan Compliance Recently under the “Responsible Officer Doctrine”, the law has reacted against unethical officers and directors by making them potentially liable for their decisions. Implementing a Corporate Compliance plan will protect the company as it complies with federal law in an effort to monitor its commitment to upholding values and mission statements. The management team will also promote ethical commitment throughout management and operations. Since Riordan may be affected by government contracts law, participation in the Medicare and Medicaid program, and environmental law, Baker states that it is imperative to implement such plan immediately. Although unlikely, the company also faces threats from changes in intentional violation of copyright law and RICO claims rooted on espionage (p. 1). Riordan Manufacturing As Fortune 1000 international industry leaders in plastic manufacturing, Riordan must implement a plan that will protect help protect its assets and investments. With an impeccable research and development team consistently exceeding expectations the company has managed to use its patented polymer material technique to help customers solve evolving needs for innovative products. With rigorous controls and reasonable pricing the company has had success in manufacturing plastic bottles...
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...Law Seminar & Brief: Chapter 8 ANCILLARY CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS TRANSACTION. Ancillary contracts are additional or supporting contracts between one of the main contracting party with third party for commercial transactions. Freight forwarder offer intermodal services to export goods on behalf of shippers or cargo owners. Common services that freight forward provide are: full-service documentation, export packaging and container stuffing, marine insurance, letter of credit negotiation and analysis, consolidation and deconsolidation services. International freight forwarder can be either ocean freight forwarder or air freight forwarder. The international transportation is unimodal when goods are carried with only one mode of transportation. While the goods are carried by more than one mode of transportation is multimodal. If the goods are transported by see, an ocean bill of lading and ocean waybill are important documents for the contract. Container is used for ocean shipment and can be door to door or consolidated. A door to door is when exporter provides full container load, otherwise goods are taken to a container freight station to consolidate with the goods of other exporters. When goods are transported by air the Air waybill will be provided by the carrier, who will be liable for damage of goods. To ensure goods against losses during transportation exporter can buy insurance. Marine insurance is the most common to the international exporter...
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...Riordan Manufacturing, Inc. (Riordan) is an innovative and evolving company that seeks to continue its impressive growth sense the inception of the company. As Riordan continues to grow and adapt to an ever changing economic environment, it must be careful not to be a victim of its own success. Having established plants in various states, and even one in China, Riordan must be aware of the legal ramifications of its decisions. Neglecting to understand the legal process of its actions has the potential to hurt Riordan’s employees, stockholders, and the company itself. Riordan has the opportunity to use existing legal business contexts to help mold and shape its decisions in a way that are beneficial to everyone. The various complexities of business laws have a potentially daunting and detrimental prospect for many companies, but Riordan must not see things this way. We will use Riordan’s reputation and strength to enhance its decision making processes to make the company stronger, while keeping within the legal boundaries of national and international business law. Of the many subjects Riordan will concentrate on, to ensure future economic growth it must first begin with Alternative Dispute Resolutions to potential problem that may arise with the various entities Riordan does business with. Disputes inevitably arise in business relationships. Riordan’s challenge will be handling in an effective and time efficient manner. Alternative Dispute Resolution Alternative dispute resolution...
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...Potential Tort Risks Business-to-business sales are an important aspect of a supply and demand economy. In the video case study Product Liability the transaction demonstrated highlights some of the tort scenarios a business manager may encounter during the course of business. The torts risks in the video are classified in three categories. Although not all the tort risks are appropriate for follow up action, one tort risk is a clear violation. Through a process of analysis, the determination of the business manager may be to involve legal counsel to recover damages for the tort. There are three categories of tort doctrine. As stated by Cheeseman (2010) “These tort doctrines include negligence, misrepresentation, and the modern theory of strict liability” (p. 94). Although the purchaser will likely have a difficult time proving negligence, the other two doctrines are appropriately demonstrated in the video case study. Misrepresentation is described by Cheeseman...
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...LAW/531 Final Examination Study Guide This study guide will prepare you for the Final Examination you will complete in the final week. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination. Week One: The Legal System and the Legal Forms of Business Objective: Differentiate between the legal forms of business. 1. What makes a publicly held corporation different from a public corporation? a. x A publicly held corporation has had an IPO, and has many private shareholders rather than being a corporation owned by a governmental entity. b. A publicly held corporation is entitled to limited liability, but the public corporation is not. c. A publicly held corporation must have a charitable purpose, but a public corporation need not have a charitable purpose d. They are two terms that have the same meaning. 2. If a corporation is properly incorporated in one state and wants to do business in a second state, the corporation a. must incorporate in the second state b. must do nothing because being incorporated in one state entitles the corporation to do business in all states c. register with the Interstate Corporation Commission d. x may be required to obtain a certificate of authority from the second state 3. Limited partners can lose their limited liability by a. investing too much in the partnership b. withdrawing...
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...To: Riordan Executive Officers and Directors Date: Monday, February 14, 2011 Subject: Corporate Compliance Plan for Riordan Manufacturing Inc. Overview of Riordan Manufacturing Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Its product include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China. The company’s research and development is done at the corporate headquarters in San Jose. Riordan’s major customers are automotive parts manufactures, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufactures. (University of Phoenix 2011) Corporate Compliance Overview Riordan Manufacturing has created a Corporate Compliance Plan customized to the organization’s specialized field of plastic designs. Riordan is committed to managing and operating the organization programs with the utmost degree of business, ethical and moral principals. Employee expectations are maintain an innovative and team oriented working environment by assuring that the employees are well informed and properly supported, the company will provide a climate focused on the long-term viability of the...
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...➢ Challenges to the Utilitarian Deterrence Interpretation • Alan Norrie (1984)→ Hobbes Is Actually a Strict Retributivist o “This account of Hobbes as anything but a retributivist rests upon a highly tendentious account of the nature of the retributive theory. It is true that Hobbes rejects revenge as a justification of punishment as the base emotion, but the classical retributivists did not found their theories upon revenge either” (Norrie 1984). o “It is because of Hobbes’s contractualist framework that his work exhibits a retributivist tendency. At the root of the idea of the social contract lies the classical retributivist idea of the individual qualifying for punishment through his prior legislative act” (Norrie 1984). • Simon Know (2005)→ Hobbes’s Denial of Free-will seems to conflict with the idea of Punishment as a deterrence...
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...COMPARISON BETWEEN STRICT AND ABSOLUTE LIABILITY THE CONCEPT OF STRICT LIABILITY There are many activities which are so dangerous that they constitute constant danger to person and property to others. The law may deal with them in two ways. It may prohibit them altogether. It may allow them to be carried on for the sake of social utility but only in accordance with statutory provisions laying down safety measures and providing for sanctions for non-compliance through the doctrine of strict liability. The undertakers of the activities have to compensate for the damage caused irrespective of any carelessness on their part. The basis of liability is the foreseeable risk inherent in the very nature of the activities. In this aspect, the principle of strict liability resembles negligence which is also based on foreseeable harm. But the difference lies in that the concept of negligence comprehends that the foreseeable harm could be avoided by taking reasonable precautions and so if the defendant did all that which could be done for avoiding the harm, he cannot be held liable except possibly in those cases where he should have closed down the undertaking. Such a consideration is not relevant in cases of strict liability where the defendant is held liable irrespective of whether he could have avoided the particular harm by taking precautions. The rationale behind strict liability is that the activities coming within its fold are those entailing extraordinary risk to others, either in...
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...Chapter 12 and 13 1. Type of damages: compensatory, punitive etc. Compensatory damages are used to compensate or reimburse a plaintiff for actual losses. The goal is to put him in the same position that he would have been if the tort had not occurred. The compensatory damages are generally broken down into special damages and general damages. Special damages compensate the plaintiff for quantifiable monetary losses (medical expenses, lost wages).General damages compensate individuals (not companies) for the nonmonetary aspects of the harm suffered, such as pain and suffering( physical and emotional pain and suffering, loss of companionship, loss of reputation..) Punitive damages are appropriate only when the defendant’s conduct was particularly egregious (reprehensible). Usually, this means that punitive damages are available in intentional tort actions and only rarely in negligence lawsuits. 2. What is defamation? Defamation of character involves wrongfully hurting a person’s good reputation. The law imposes a general duty on all persons to refrain from making false, defamatory statements of fact about others. Breaching this duty in writing or in another permanent form involves the tort of libel. Breaching this duty orally involves the tort of slander. 3. What is fraudulent misrepresentation? What is appropriation of one’s likeness? A misrepresentation leads another to believe in a condition that is different from the condition that actually exists. Although person...
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...Do companies have complete freedom to act Do companies have complete freedom to act? Analyse the doctrine of ultra vires and the proposed reforms in the Companies Bill designed to grant companies full capacity. The doctrine of ultra vires has been fervently debated for many years since its conception in the 19th century, and has caused widespread confusion within the sphere of company law. It will be necessary, in order to construct a thourough and fluidous argument, to outline the history and development of the ultra vires doctrine and why, some would argue, it has become the bane of company law. It will also be necessary to dicuss the relevance of ultra vires to modern company law and the efforts to curtail its widespread influence. The DTI’s White Paper Modernising Company Law, presented to Parliament in 2002 seeks to afford companies the ability to act with unlimited capacity and therefore remove the problems associated with the ultra vires doctrine which will be discussed shortly. This essay will adopt the normative approach that companies, in order to fulfil their potential should have the ability to expand by any means possible to achieve the most economically efficient response. The doctrine of ultra vires is widely regarded as a way in which the company law can be responsive to different bodies and constituencies. The doctrine of ultra vires has been subjected to many reforms and has been highly criticised since it was first introduced, this is largely due to the fact...
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...Write a 4-6 page paper based on your answers to the following questions. Utilize the Showalter textbook and at least two (2) other resources to support your answers. Identify and explain the four elements of proof necessary for a plaintiff to prove a negligence case. Explain how the standard of care can be proven. In the standard of care, there is a certain and prudent kind of way that all persons involved should behave in a given circumstances. The duty of due care requires them to be prudent and act with care in order the patients to be safe. The definition given by a legal dictionary (Hill & Hill; 1981-2005) was that: “standard of care is the watchfulness, attention, caution and prudence that a reasonable person in the circumstances would exercise. If a person's actions do not meet this standard of care, then his/her acts fail to meet the duty of care which all people (supposedly) have toward others. Failure to meet the standard is negligence, and any damages resulting therefrom may be claimed in a lawsuit by the injured party. The problem is that the "standard" is often a subjective issue upon which reasonable people can differ”. As the definition explained above whenever a person fails to behave as a reasonable and prudent person, he automatically commits a breach of duty. But in the other hand, a standard of care can be proven when there is duty of care which requires all persons to conduct themselves as a reasonably prudent person would do in similar circumstances...
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...Riordan Corporate Compliance Plan Susan Holmes, Marcia Kelly, Peter Flores, Ronald Cox, Celeste Mellett, and Orlinda Watson, LAW/531 April 9, 2012 Instructor Name: Thane Messinger Understanding the position companies must take to protect the interests of investors and employees, the organization must have compliance plan in place. The compliance plan must address every possible liability that can bring financial and physical harm to the company. The organization must work with each department to understand the risks involved with each job. Knowing the risks and working to help the employees understand what those risks are and will help keep the employee minimizing risks of the organization. The compliance plan helps list the goals Riordan Manufacturing established to ensure the employees know the correct steps to comply with the laws and regulations. Legal Risk Exposure and Responses Traditionally, Riordan Manufacturing Company legal counsel interacts primarily with executive management and the board of directors to report on existing, pending, and probable litigation. Although this responsibility continues to be critical, it is imperative that there be an increased presence of legal counsel to the internal organization. It is important for counsel to act as an internal company consultant to help reduce legal risks. Activities include circulating existing legal risks status data, consulting internal management, acting as a sounding board for staff to...
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...Chapter 8—Negligence and Strict Liability TRUE/FALSE 1. A blind person will be held to the standard of care of the reasonable blind person rather than that of the reasonable sighted person for purposes of determining negligence. ANS: T MSC: AACSB Analytic 2. In applying the reasonable person standard, the court takes into account a person's physical, but not mental handicaps. ANS: T MSC: AACSB Analytic 3. A "reasonable person standard" does not apply to children since they do not have the judgment, intelligence, knowledge, or experience of adults. ANS: F MSC: AACSB Analytic 4. A person who falls asleep while driving would not be liable for any resulting injury since it would be an unavoidable accident. ANS: F MSC: AACSB Analytic 5. The standard of conduct which serves as the basis for the law of negligence is usually determined on a cost-benefit or risk-benefit analysis. ANS: T MSC: AACSB Analytic 6. A reasonable person, as used in the law of torts, is a fictitious individual who is always careful, prudent, and never negligent. ANS: T MSC: AACSB Analytic 7. The general rule for the standard of care used in tort law is: a person is under a duty to all others at all times to exercise reasonable care for the safety of other persons and their property. ANS: T MSC: AACSB Analytic 8. Compliance with a legislative enactment or administrative regulation does not prevent a finding of negligence if a reasonable person would...
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...Employer's Duty of Care and Issues of Compensation August 9, 2010 Law, Ethics, and Corporate Governance LEG-500 Abstract For the purposes of this assignment we independently viewed a video entitled “Employer's Duty of Care and Issues of Compensation.” In the video, the car dealership is running a special promotion offering free oil changes in order to get existing customers back into the showroom. An employee notices a backlog of customers waiting in line for their oil changes and notifies the owner of the dealership, Herman. Herman calls his newly promoted service manage, Jake, to explain the backlog. Jake emerges from the service bay holding his bloody thumb in a rag. He explains as certified auto mechanic, he is doing a thorough job on each car en though he is working overtime without overtime pay. The manager tells him to do a quick, “lousy” job of the oil changes just to get them done. He doesn't care about Jake's mechanics standards. Jake retaliates by complaining he's hurt his thumb due to his long hours and threatens a worker’s compensation claim if he isn't compensated fairly for his work. The video give rise to a number of ethical questions. The purpose of this paper is to address these questions as detailed in the assignment using readings on employee and consumer privacy law, as well as business ethics and corporate policy. Answers to Assignment #3 Questions The questions (in bold type face) follow as detailed in our assignment. 1. Explain...
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