The historical cost accounting convention. - 2253 Words

INTRODUCTION Realised-profit, matching-based, historical cost accruals accounting (HCA) has for over fifty years been repeatedly challenged as being an inadequate basis for the measurement of income which reports increments in the value of businesses. Such challenges continue unabated and are made by both accounting standards regulators and by academic commentators. Despite its obvious deficiencies for measuring valuation based income, and subject to concept of prudence, internationally HCA remains the dominant basis for reporting and share prices appear to be influenced by reported earnings. This paper will go through few criticisms of our standard accounting model, look at possible alternatives and finally will provide a detailed†¦show more content†¦Opportunity costs are commonly used in economics and do not have much relevance here, however accounting bodies and academic commentators have forwarded new methods of accounting using the current asset value, as opposed to the conventional acquisition cost. Replacement costs could be used as a possible alternative to historical cost method. In crude terms Replacement costs (RC) may be defined as the estimated amount that would have to be paid in order to replace the asset as the date of valuation (Page 46,Lewis Pendrill, 2000). An advantage of replacement cost is that it focuses on the services the asset will provide rather than the precise physical asset. It therefore excludes speculative gains that might be made from selling a building to a purchaser who will redevelop it for an alternative use; equally it allows valuations to reflect the use that the current owner can make of an asset, even if a purchaser would not be able to employ the asset as profitably. However there is an immediate flaw noted in its definition, where the costs have to be estimated. Estimation has to be carried out after reviewing the asset, the market, and if an identical asset is still being traded in the market. Further difficulties inherent in the estimation are noted when the asset in the market is either not identical or obsolete. In these cases usually the replacement costs are much higher.Show MoreRelatedAdvantages and Disadvantages of Hstorical Cost Accounting1241 Words   |  5 PagesHstorical Cost Accounting Advantages and disadvantages of historical cost accounting, alternatives to historical cost accounting 2.1 Introduction Accounting concepts and conventions as used in accountancy are the rules and guidelines by which the accountant lives. The historical cost accounting convention is an accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition. The historical cost accounting is the situationRead MoreAccounting Concept and Conventions1685 Words   |  7 PagesACCOUNTING CONCEPT AND CONVENTIONS In drawing up accounting statements, whether they are external financial accounts or internally-focused management accounts, a clear objective has to be that the accounts fairly reflect the true substance of the business and the results of its operation. The theory of accounting has, therefore, developed the concept of a true and fair view. The true and fair view is applied in ensuring and assessing whether accounts do indeed portray accurately the businessRead MoreAccounting Research: Advantages of Cash Flow1720 Words   |  7 Pagesdependent on accounting conventions and concepts/principles * Cash flow reporting satisfies the needs of all users better since cash flow is more direct with its messages. Some of the interested user parties are: * Creditors   -repayment of debts, overdue accounts * Management -cash flow reporting provides the type of information which decision should be taken re: relevant costs ( decision based on future cash flow) * Shareholders amp; Auditors -cash flow accounting and reportingRead MoreThe Use of the Historical Cost Convention and the Accrual Concept for Stewardship and for Decision Making2814 Words   |  12 PagesPaper on:- â€Å"The use of the Historical Cost convention and the accrual concept for stewardship and for decision making† Topic 1: The Historical Cost Convention Introduction The historical cost convention is unarguably one of the most debated topics in the theoretical base of accounting. Some are of the opinion that it should be done away with, while others believe that it plays a vital role in presenting an accurate picture of the business concern. The Historical cost convention has different uses andRead MoreThe principle of historical cost is still used in accounting when there is a large measure of agreement that it is inappropriate. Discuss.1226 Words   |  5 PagesSynopsis. Historical Cost Accounting is a traditional valuation method as it reflects only on the past cost of the asset, however in the contemporary business environment companies must remain flexible and transparent. This belief has lead to the creation of several other valuation methods, due to word constraints I have focused primarily on Fair Value Accounting as an alternative to Historical Cost Accounting. Although Fair value accounting is a theoretically superior valuation methodology, thereRead MoreAccounting Concepts, Conventions and Solutions3647 Words   |  15 PagesContents QUESTION ONE: Accounting Concepts and Conventions 1 a) Accounting Concepts 1 i) The going concern concept. 1 ii) The accruals concept (or matching concept) 1 iii) The entity concept: 3 iv) The money measurement concept: 3 v) The historical cost concept: 4 vi) The realization concept: 4 vii) Duality concept: 4 b) Accounting conventions 5 QUESTION TWO: Clashing accounting concepts and conventions that might bring about inconsistency in the accounting process 9 1. Clash betweenRead MoreEssay about Discuss the Need for Regulation in Financial Reporting1524 Words   |  7 Pagesfinancial reports in different ways. There are international differences in accounting practices. Accounting practices differ from country to country and so do the regulatory frame work and the balance between the public and private regulation. Over the years, bodies like the EU have been formed. There is need for accounting regulation as all these different countries coming together may have different accounting standards, thus there will be the need for financial reports regulation. In the Read MoreEffect of Accounting Concepts on Financial Statement1735 Words   |  7 PagesTHE EFFECTS OF ACCOUNTING CONCEPTS ON FINANCIAL STATEMENT 5.1 ENTITY CONCEPT The first accounting concept is entity concept. These concept shows accounts are kept for entities and not the people who own or run the company.   Even in proprietorships and partnerships, the accounts for the business must be kept separate from those of the owners. This is because what whatever amount the company owes to others is not the liabilities of the owners. The maximum amount that the owner is going to loseRead MoreDo Financial Statements Tell the Truth?1736 Words   |  7 Pagesnot have bought the stuff if we didn’t think it was going to generate more cash than it cost us.) However, even if our firm’s managers are honest and competent, allowing them to conjure instant profits with optimistic estimates of asset values might tempt corruption. Potential investors might be reluctant to rely on statements compiled this way. In the United States, firm assets are initially valued at â€Å"cost†. Very simply, we say an asset is worth whatever a firm paid for it. For our machinery,Read MoreEssay about Measurements in Accounting: Finacial Reporting578 Words   |  3 Pagesin financial statements, which are historical cost, current cost, realisable (settlement) value and present value. Fair value is not included in the measurement bases, but it is a widely used basis now, and it will be discussed with other measurements as below. 2.2 Measurement Bases ï‚ž Historical cost shows a prudent attitude to measure the past performance and net assets which are actually incurred. It is reliable when based on actual transactions. ï‚ž Current cost, just as its name implies, shows

Life History Essay - 3149 Words

Life History of Joanne Joanne was born in National Women’s Hospital, Auckland, New Zealand in October 1964. Joanne’s father worked full time as a plumber, her mother worked part time as a factory worker while also bringing up Joanne and her older brother. Joanne has spent all her life, from birth to present day, living in West Auckland. Joanne has never married and does not have any children. At the time of this interview Joanne is at the middle adulthood stage of her life. This life history follows Joanne’s life stages and identifies her major normative age graded events, normative history graded events and also non normative events, and reflects on the impact of these events on her development. Normative age graded influence included†¦show more content†¦Psychosocial Development This stage in Joanne’s life also was a time of shyness for Joanne. Joanne remembers her mother telling her that she would cry and cling to her mother or father when Joanne was given to someone (age graded normative event). Attachment theory states that attachment is a developmental process based on the evolved adaptive tendency for young children to maintain proximity to a familiar person, called the attachment figure (Bowlby, 1999). Joanne’s parents were authoritarian (Burton, Western Kowalski, 2009), placing high value on obedience and respect for authority, often not discussing why particular behaviours are important or listening to the child’s point of view. Joanne’s parents, particularly her mother often smacked her (history graded normative event) without discussion with Joanne of what she had done wrong. Middle and late childhood Physical Development Joanne continued to gain weight throughout her middle to late childhood (age graded non normative event). Girls are more likely than boys to be overweight (Santrock, 2008), also a change in Joanne’s diet may have caused her weight gain to continue, with the introduction of several major fast food restaurants (historic normative event) such as Kentucky Fried Chicken and McDonalds in the early 1970’s Joanne’s family was drawn to the easy access of this type of food. During this time the family alsoShow MoreRelatedMy Life History Essay1195 Words   |  5 Pages| My Life | The absolute true story of my life. | | Malik Flournoy | 8/22/2012 | U.S. History Mueller U.S. History Mueller | â€Å"Life is only as complicated as you make it,† my mom would always say to me. My life has been great so far, then bad at times. But in retrospect my life may seem better than others. Although that may be the case, my life isn’t as perfect as it may appear. Being me I had to go through a father-less childhood with a â€Å"pop-up father†, brainless injuriesRead MoreLife History of Bill Clinton Essay1735 Words   |  7 Pageswanted him in office. They liked what he was doing for the country and supported him no matter what. Bill Clinton was an important president in American history, even through his personal scandals and broken promises. William Jefferson Clinton, now known as Bill Clinton, was born on August 19, 1946. He spent the first six years of his life in Hope, Arkansas. William Jefferson Blythe, Clintons father, died in an auto accident three months before his mother, Virginia Cassidy Blythe, gave birthRead MoreEssay on Life Challenges and History of Dylan Thomas899 Words   |  4 Pagessuffered from many things two of which were financial problems and alcoholic abuse. Thomas poems were his way of expressing his feelings and thoughts. Despite Thomas struggles with life, he still managed to become a very successful poet. 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The original drum was a animal hide stretched over a hollow log which was held by woodenRead MoreA Brief History of the Life of Anne Boleyn, An Outline Essay696 Words   |  3 PagesAnne Boleyn: A Brief History Specific Purpose: To inform my audience about the life of Anne Boleyn and the impact she had on the English monarchy. Introduction I. Attention-Getter: I am come hither to accuse no man, nor to speak anything of that, whereof I am accused and condemned to die, but I pray God save the king and send him long to reign over you, for a gentler nor a more merciful prince was there never: and to me he was ever a good, a gentle and sovereign lord. (Anne Boleyn Bio,Read MoreEssay about The Life of a Slave during American History1815 Words   |  8 PagesThe cause of slavery is very important to the history of America for some. Many think that capitalism started slavery. With this form of civilization, religion and economy were involved, making church and state ruled together when they should be ruled separately. Most slavery was based on the racial differences, another part of capitalism, but it also said that blacks, or otherwise known as â€Å"Negroes,† were impersonal. Capitalism started as evil was spreading in the South and soon made its wayRead More Historical Perspective in the Essays of Susan Griffin , Richard Rodriguez, and Ralph Ellison1570 Words   |  7 PagesHistorical Perspective in the Essays of Susan Griffin, Richard Rodriguez, and Ralph Ellison (Our Secret, Extravagance of Laughter, The Achievement of Desire) Susan Griffin’s â€Å"Our Secret† is an essay in which she carefully constructs and describes history, particularly World War II, through the lives of several different people. Taken from her book A Chorus of Stones, her concepts may at first be difficult to grasp; however David Bartholomae and Anthony Petrosky say that, â€Å"Griffin writesRead MoreCritical Analytical Essay : Laurel Ulrich1626 Words   |  7 Pages Critical Analytical Essay Assignment In 2007, Laurel Ulrich, wrote Well-Behaved Women Seldom Make History, from which there is an essay that speaks on history, and how women have been left out. She wrote this as a result of her newfound fame due to a phrase in her 1976 journal article; this phrase would ultimately give her 2007 article it’s name. In her essay, her goal is to write about the lack of women in history as a whole; she then illustrates the type of women who by a turn of fate makeRead MoreWriting About Me : A Writer And Critic Of Your Own Paper1270 Words   |  6 Pagesfacebook, twitter, and snap chat. Sometimes I even put the picture of my life events on Instagram hoping that people will see it and like it. I never really thought that one can write about his/her life history through words on the paper. I know that writers can do that in fact, it is their job to incorporate everything through writings, but I never thought that I will do that one day. I was able to do it not with the regular essay that includes a thesis, topic sentences, 4 or 5 paragraphs and then aRead MoreI Am The Product Of Clark County Educational System Essay1503 Words   |  7 Pageshow to write essays correctly. I am the product of Clark County Educational system. I have always struggled through my last classes and hoped to get out of my struggles this semester. One the greatest challenges that I faced was the distinction that existed among different types of writings that are performed within the English language. I did not understand how the distinction between a narrative essay, report essay and an analytical essay, argumentative essay, and reflective essay among other types

Marketing intelligence in SMEs

Question: Flesh out a market plan for the product, discussing key elements of the 3 Cs and the 4 Ps. Identify Why you are choosing the strategies you choose and the interactions of the different strategic elements. Be specific and make necessary assumptions where appropriate.? Answer: Developing a marketing plan: Marketing involves a lot of preparation and also takes lot of time to develop an effective plan for any particular product in the market. A strong and developed marketing plan will help to ensure that what is to be scheduled and hoe much amount of funds are necessary to be spent so that a product could be developed into the market. It is necessary to build up a marketing plan because it does a lot to build up a product in the market. It involves everything to help to understand the target market and also seek to understand the competitive position in the market of that particular company or any particular product. It also helps to create a level of differentiation from the other competitors so that the company can make a sale out of the product as well as of the company. This also helps to achieve the marketing goals and objectives within a short span of time (Cacciolatti Fearne, 2013). The company had strategized and had planned to develop a pattern of computer display that comes with rigid rectangular surfaces that is the scroll type computers. If any individual wants to use a computer display then they can simply grab on the side of the tube and put the scroll out of the tube. The diameter is usually larger and all the electronics are within that particular tube. The size of the screen is usually based according to the length of the tube. These kind of displays are compatible with all the formats of the operating system and it comes with full HD color display as well. The scroll type monitors are considered to be 10% more expensive when compared with other type of displays that are available in the market. The sizes if such type of screens also needs to be compared with the other available monitor screens available in the market (Malhotra Dash, 2013). The target consumer market for such type of monitoring screen are very fragmented and there are few dominant players who come into the role and they play a significant role here. The technology is more updated with personal computer monitoring system. There are various other particular segments that customizes their own needs. There are students and other corporate travelers who come up with their own needs and these consumers tend to stay away from the desk and they are more aligned to use mobiles. They are in need of a high quality and stable monitor so that they can be saved from alien monsters like the corporate world desktops that have giant screen to work for. The computer monitor market is been said to be growing every year by 10 percent. But the margins after selling it is becoming very low (Okeudo Margaret, 2013). This happens mainly because of the fact that there is a need for customization and also of private label activity that is said to have taken place with personal c omputer manufacturers and some of it also takes place because of high sales promotional activities. The consumers need to purchase a new computer monitor every time whenever they purchases a new computer from the market. Proper business planning will necessarily ensure 3Cs and 4Ps as well in the market. These will help to exercise and make the exercise more valuable in terms of its other businesses. It helps to make a business well-structured and organized and helps a business to grow and sustain in an organized way as well. The 3Cs of a company are Company, customer and competition. On the other hand the 4PS are product, price, promotion and place. Company: the company matters a lot while developing any new product in the market. Here the product that is been discussed is scroll type personal computer displays. It is very important to see that what type of marketing and RD team is been there within the team so that they can help extensively in developing the new product and also help in promoting the new product in the market as well (Stosic, 2014). Customers: here the target customers are students and the corporate users those who are bored of using desktops. They were in need of a high quality and stable monitors so that they could be saved from the alien monsters of the corporate desktops. They were more aligned to use mobiles so that their work would just be a click away. Such customers were in need of a low desktop space and they required large screens for spreadsheets, email and also using word documents. Also there are general residential users who need such scroll type personal computer displays to use social media as a time of their leisure time. Also they required email answering and doing elementary school kid homework. People try to upgrade these screens as a part of their personal computers. Competition: The Company as well as the product received a tough competition. There were few dominant players who gave tough competition. It was important to differentiate the product as and when it is been compared with its competitors. The company being a small enterprise also received competition from the small players and the new entrants those who are coming in the market. The main reason that they received high competition because such scroll type displays were a bit expensive therefore not every people could afford with that much of ease and comfort. The 4Ps of the product are as follows: Product: the product is been designed in a shape of a tube apart from the usual ones that comes in a rectangular surfaces. If any individual wants to use a computer display the can simply grab the ring on the side of the tube and gently put the scroll out of the tube. The electronics that are present in the tube are also larger in diameter than as compared to a dry erase marker. The size of the screen is based on the length of the tube. The display comes along with visual of full color HD display. And such screens are compatible with all operating system formats ('Technology-Driven Online Marketing Performance Measurement: 2014). Price: When the sizes are been compared with the rigid computers these type of monitors are about 10 percent more expensive. These type of displays are expected to be sold in all the retail shops at a price between $400-$800 that is based on the size of the monitors and the screens as well. Place: place is determined by the demographic condition about the product that is been highlighted in the company. Here the major demographic segment includes the target customers who are students and the corporate users those who are bored of using desktops. They were in need of a high quality and stable monitors so that they could be saved from the alien monsters of the corporate desktops. They were more aligned to use mobiles so that their work would just be a click away. Such customers were in need of a low desktop space and they required large screens for spreadsheets, email and also using word documents. Promotion: These type of computer monitor market is been growing at 10 percent every year but the sales margins were low. The promotional activities mainly involved intensive sales promotions that are required to get the customers and they are instigated to buy new monitors every time whenever they purchase a new computer. References Cacciolatti, L. and Fearne, A. (2013). Marketing intelligence in SMEs: implications for the industry and policy makers.Mrkting Intelligence Plan, 31(1), pp.4-26. Malhotra, N. and Dash, S. (2013). Future of research in marketing in emerging economies.Mrkting Intelligence Plan, 31(2). Okeudo, G. and Margaret, O. (2013). The Impact of Marketing Mix (4Ps) on Warehousing Operations: Case Study of Unilever Nigeria PLC.American Journal of Business and Management, 2(2). Rahman, K. (2013). Wow! It's cool: the meaning of coolness in marketing.Mrkting Intelligence Plan, 31(6), pp.620-638. Rakonjac-Antic, T. (2013). Management of key pension plan risks from the user aspects.Marketing, 44(2), pp.128-136. Stosic, I. (2014). The role of marketing in corporate restructuring in crisis period.Marketing, 45(1), pp.41-49. Tapp, A. and Spotswood, F. (2013). From the 4Ps to COM-SM: reconfiguring the social marketing mix.Journal of Social Marketing, 3(3), pp.206-222. Technology-Driven Online Marketing Performance Measurement:. (2014).International Journal of Online Marketing, 4(4), pp.0-0.

What Do I Have to Offer This College Family free essay sample

Upon choosing this topic I pondered, what next? I sat in front of my PC deliberating what direction wanted this piece to go in, and what impression I wanted to give my future alma maters admissions of myself and then it struck me. The point of this essay is not to paint an illusion of myself to you, but, to show you what have to offer as a unique individual. Marianne Williamson in her book, Return to Love and I quote, wrote, Our greatest fear is not that we are inadequate, but that we are powerful beyond measure. It is our light, not our darkness that frightens us.We ask ourselves, ho am to be brilliant, gorgeous, handsome, talented and fabulous? Actually, who are you not to be? I first stumbled upon this quote during one of my times of feeling deeply insignificant among my high school population. I decided that constantly feeling as though you are insignificant leads to you becoming insignificant. We will write a custom essay sample on What Do I Have to Offer This College Family or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Am a believer that the mind is a very powerful thing and I plan to use this belief a self confidence to encourage those around me to do nothing but their best because the min ate you start believing your worst is your best, it in fact becomes the best you can do.Academically, am well rounded. Have over the years gained all the necessary basic knowledge to excel in any subject decide to work at. I study well in groups and have always had a love for tutoring; as such during and after high school I took the responsibility of tutoring my younger sister and her friends at the primary level. Throughout high school I also tutored my friends in order to ensure that leisure time was not affected by poor academics. The passion for helping those in need, has become a part of who am and I intend to use this to help those around me if I am accepted into the university. Extremely confident a team player, athletic and energetic young woman and I have dreams of one day helping everyone around me see that they too can be apart of this world holding only a positive outlook for their lives and being calculative about consequences. Am trained as a peer councilor and intend to use my skills for self fulfillment as well as the maintaining of the mental well being of those I encounter in my tenure at this prestigious university. It would be unlike me to not mention my rich Jamaican heritage as one of the things have to offer this university.Cultural diversity is one of the many things that make university life worthwhile and I am no doubt endowed with a mixture of cultures; as the Jamai can culture has evolved to included aspects of cultures of people from all walks of life. Hope have given you a good enough idea of what I have to offer this institution, but I assure you this is just the tip Of the ice berg. I also have no doubt that will not be a silent student as intend to be a production member of the university family. As we say in Jamaica W like but WI tallow, meaning big things come in small packages.

Legal Research Essays

Legal Research Essays Legal Research Essay Legal Research Essay Essay Topic: Law Simon, a first year law student, decided to buy a DVD for use at university. He wanted a machine that would play his own DVDs as he had a collection of films he had copied from video to DVD at home. He explained exactly what he wanted at the shop. However, when he got the machine home he found it would not play home-recorded material, but it did play the pre-recorded DVDs he had bought. He went back to the shop but they said they did not have the machine he wanted at that he could not have his money back as the DVD player they sold him was in perfect working order. Simon, deciding he needed a break booked a holiday, looking for: Sun, sand and Sangria. He told the holiday agents exactly what he wanted; lots of people, a full night life, luxury accomodation and the beach. He was assured that Hotel Luxor in Macedonia in July would be perfect to meet his needs. He took the holiday, paying by credit card. On his arrival, he found himself booked into a small chalet in the mountains, where it snowed. There was no room service,lights out at 10.00 pm and the only other guest at the chalet was a surly sheep. Thoroughly dissapointed, Simon returned to Liverpool to resume his law studies. However, he had not paid his full fees from the previous year and was not allowed to enrol on the degree. Advise Simon of his legal remedies in all the above circumstances. Thus, proceeds of every centavo a buyer gives off should be made known to him. The economic dispute among micro-businesses and that of retail stores has been an immense issue for the competition has been leveling up as time goes by. The drastic effect does not Just concern their industry but mostly the welfare of the end consumers. Therefore it is a must to discern the monetary outflow of the sales incurred by the shopping malls and those of the Mess or Micro, Small and Medium Enterprises. Acknowledgement The satisfaction and euphoria which accompany the triumphant completion of any task would be incomplete without mentioning the people who made it possible and We, the researchers, would like to extend our deepest gratitude to Tatty. Cleveland Z. Bulla who really had inspired us through his valuable insights to continue with our work. Also our appreciation to the pecuniary and moral support our parents have given us. We are deeply indebted to them for without their assistance, this report would not have been a possibility. List of Tables List of Figures

Enforceability of international and local mediation (UAE) Assignment

Enforceability of international and local mediation (UAE) - Assignment Example 23). Since its inception, there are records of several organizations and institutions that have used mediation processes to settle what would otherwise have been long running legal litigation and battle. In some cases, mediation has come in as settle options for cross border cases involving the United Arab Emirates and other countries. As far back as 1971, the United Arab Emirates underwent a successful mediation process to settle what would have been a long running international litigation with Oman and this move highly praised by the United States and other international bodies (Condliffe, 2002, p. 233). This means that mediation takes several dimensions and come in as resolution option for different forms of litigations in the United Arab Emirates. However, there have been instances where the mediation processes have not been continued to its logical conclusions. This is because mediation outcomes are not enforced, resulting in the need to resort to the courts. This paper therefor e discusses enforceability of mediation outcome and provides recommendations to overcome the problems associated with lack of compliance. ... 32). Moreover, the conclusion of mediation is free of all forms of legal punishment such as fines and imprisonment. What this means is that parties involved in mediation can always be assured that there will be settlement that does not put any commercial cost on them. What is more, peace is always guaranteed when mediation is used. Whether used by individuals, corporate bodies or between nations, the use of mediation helps in eliminating the fear of violent, brutal and sadistic conclusion to cases (Condliffe, 2002, p.111). This is especially important when using mediation between nations. This point is so made against the background that the world has experienced a number of wars, which experts have ruled that they could have been avoided if there were alternative means of resolving them. There are cases of major corporate organizations which went into liquidation because of protracted court proceedings and rulings. Most of these organizations, if they had chosen the path of mediatio n would still have been functioning and making profits. Finally, it would be said that mediation is essentially important in coming out with easy-to-apply remedies. This is because the outcomes of mediations are mostly arrived as a result of compromise between the parties involved instead of a ruling by an arbitrator. This way, the two parties arrive at consensus that benefits them both in settling their differences. Factors inhibiting the Compliance of Mediation Outcomes Despite the beautiful advantages of the use of mediation that can be listed on and on, there are major hindrances to the successful application of mediation as a dispute resolution and construction mechanism and therefore put a lot of parties

Obligation in Law Case Study Example | Topics and Well Written Essays - 2000 words

Obligation in Law - Case Study Example Jack - he was watching the news at home when a live feed of the accident came on TV and realised that his wife and daughter were among the spectators. He was a nervous wreck for several weeks although he had learned earlier that his wife and daughter left the airfield 30 minutes before the accident. The claims by the five individuals when consolidated into one imposes on the plane manufacturer an obligation in law arising ex delicto, or from the tortuous acts of negligence and recklessness (Classic Encyclopaedia, online; 'Lectric Law Library, 2001). Negligence is in fact one of the five major offenses punishable under the tort law, the other four being trespass on land, trespass against goods, trespass against person, and defamation (Street, 1999). This suggests that the plane manufacturer as respondent or defendant in the five tort cases has civil liability to compensate the claimants for the alleged damages they sustained from the crash in the form of "nervous shock." However, a careful reading of the law, specifically the assigning of civil liability and the circumstances that warrant the awarding of damages thereto, makes that proposition doubtful. Obligation is defined as an act or course of... Negligence is in fact one of the five major offenses punishable under the tort law, the other four being trespass on land, trespass against goods, trespass against person, and defamation (Street, 1999). This suggests that the plane manufacturer as respondent or defendant in the five tort cases has civil liability to compensate the claimants for the alleged damages they sustained from the crash in the form of "nervous shock." However, a careful reading of the law, specifically the assigning of civil liability and the circumstances that warrant the awarding of damages thereto, makes that proposition doubtful. Obligation Obligation is defined as an act or course of action required of a person by law or by virtue of his position, religion or the prevailing custom (Currie & Cameron, 2000). In this case, it is the law that supposedly obliges the plane manufacturer to compensate the five claimants for nervous shock, which amounts to damages difficult to quantify. The inherent difficulty of quantifying nervous shock is the first hurdle that the claimants need to overcome to prove their case against the respondent. As noted by Cabresi & Hirschoff (1972), such emotional pain and suffering, which leads to loss of enjoyment of life, is not easily quantifiable and depends on the individual circumstances of the claimants. Looking into these individual circumstances, it seems hard to believe that Jack was in shock for a prolonged period since he was not on the scene at all and he immediately learned that the family members he was worried about left the air show 30 minutes before the accident. The same question c an be asked of John who lives quite a distance from the airfield, of