April 26, 2013 Case Name: Captiva Conglomerate I. Major Facts: A. Captiva Conglomerate has procured a new software product to provide a custom inventory management system. This system is not providing the information that the company needs, is behind schedule and over budget. B. The Inventory and Spares Manager has reported that that the system is “a disaster,” and “my people can’t use it.” The Materials Manager wonders whether or not the company should sue the supplier.
Steele and Faust is an incidence of unilateral mistake on the part of the seller. The Chaney estate had mistaken the material fact of the property size for sale in the contract, which would have substantially increased the price. It is unfortunate that the contract was already signed before the actual property size was discovered because in most cases with unilateral mistakes, the mistaken party is usually not permitted to rescind the contract. There is one way that the Chaney estate may be able to avoid the loss if and when taken to court if the loss is found to be unconscionable. Otherwise the sale of the Chaney estate was sold at bargain to the Drs.
The cost of capital is rate of return required by a capital provider in exchange foregoing an investment in another project, assets or business with similar risk. For that reason, it is also known as an opportunity cost. For investors, the rate return on a security is a benefit of investing. But for financial managers, the same rate of return is a cost of raising fund that is needed to operate the firm. In other words, the cost of raising fund is the firm’s cost of capital.
I believe that the first unethical situation that I noticed was Bob’s current therapist Dr. Carswell Fensterwald calling Dr. Leo Marvin to refer Bob to Dr. Marvin. Did he feel bad in knowing the type of patient he was giving to Dr. Martin? He never disclosed the entire reason behind giving Bob to him. I feel it was irresponsible of Dr. Marvin to take on such a complex patient the day before he left for a summer vacation with his family. I feel that he should have referred him to another therapist instead of thinking about himself.
On the other hand MI backed mainly by shareholders equity and performing assets and thus would be able to issue new debt increasing value for both shareholders and the corporation. Thus the shareholders would gain at the expense of bond holders and the equity value of the company would increase. b) Bondholders Bondholders had a lot to lose as according to Project Chariot almost all the debt would be assigned to HM. Given the problems in real estate and hotel markets there was a concern of HM’s ability to meet its debt payment and there was a high probability of default. This meant that the risk was issued at investment grade but now was not backed by valuable assets of the companies which were to be spun off to MI which was to be backed by equity.
Epicurus gathered that the unhappiness of the population was a direct effect of trying to attain extravagance. Based on this, it is easy to see what Epicurus believed to be the cause of these new millionaires’ woes. Living such a lavish life has added more stress and a lack of purpose to their existence. Had Epicurus been an uncritical egoistic hedonist, he wouldn’t have understood why “sudden wealth syndrome” is looked at negatively because it would have opened the doors to many opportunities at satisfying
Sufficiently complete For an offer to be sufficiently complete it should be clear of; who the buyer and seller is, what is being bought and sold and how much money being given and received. 2. Promissory An offer must have a responsibility to give or do something, an undertaking of liability. When an offer is made the terms need to be specified so it is clear what the parties involved in the offer need to do. In the case of Placer Development Ltd v Commonwealth (1969) 121 CLR 353 the Commonwealth government said they would pay a subsidy ‘…of an amount or at a rate to be determined by the Commonwealth’ The issue was whether the government’s statement was a legally enforceable promise.
The principle area that this question is concerned with is that of contractual formation. One will assess whether there has been an offer matched to a corresponding acceptance in the Case of Charlie and Rose, or whether Charlie’s letter was merely an invitation to treat. The third significant issue to look at is if a contract was then formed between C and R, would Charlie be in breach of this contract when he sells the ring to a third party. A consideration of the nature surrounding these issues and their application to these facts would be relevant in determining these matters. First it is relevant to differentiate whether Charlie’s letter constituted the requisite terms to be an offer or an invitation to treat.
The richer people are the higher their APC. This is because if they have savings and investments, they don’t have to be as careful of unplanned costs. Next, if the consumer’s confidence is high, such as being optimistic about the future then the consumer is less likely to save for a rainy day and is likely to spend and consume more. Also, if interest rates are low then the consumer is less likely to save and thus spend more. Finally, age structure of the population drives consumption.
These effects cancel out making the shareholder value unmoved. However, it is important to note that as a firm borrows more, the risk of default increases making the company pay higher interests rates on new debt. There is a point in the D/E ratio (usually high) where holders of the risky debt begin to bear part of the firm's operating