Economic Impact of Insurance Consolidation and Hospital Mergers - Free Essay Example

Sample details Pages: 7 Words: 2107 Downloads: 6 Date added: 2018/12/26 Category Economics Essay Type Research paper Level High school Topics: Consumer Rights Essay Hospital Essay Did you like this example? Consolidation in the health care providers has been increasing significantly over time. This has affected the provision of health care services to the people. It is noted that health care systems are undergoing the consolidation primarily because they are driven by the regulatory factors, technological innovations, financial pressures and the market dynamics. Don’t waste time! Our writers will create an original "Economic Impact of Insurance Consolidation and Hospital Mergers" essay for you Create order Other players in the market such as the banking institutions have also been affected by the consolidation wave that has forced them to seek survival tactics such as mergers and acquisitions. The rapid wave of consolidation that has taken place poses a critical question whether the ongoing changes in the healthcare providers regarding the collaborating by the providers would have on the future health care. However, it is noted that with the previous incidences of mergers and acquisitions, healthcare service provision has significantly increased. Unfortunately, the considerable costs attached to the healthcare provision after the consolidation seems to continue to rise with time. This paper analyses the impact of insurance consolidation, hospital mergers, and the economic impact this has on providers and consumers. Healthcare competition does not have a similarity to other market firms, which experiences high competition with an increased number of participants. This does not affect the health care providers. Notably their service provision costs remain unchanged about the number of available competitors in the same market. However, with the consolidation of the insurance companies that offer services on the health care, it would be evident that it signifies a concern to the consumers. Based on the economic theory, when two or more insurance companys partner in any form, they are likely to increase the costs of their premiums given that the number of competitors has dropped. On this note, insurance companies in the healthcare industry have a direct impact on the policyholders. According to Trish, Herring, (2015), the consolidation of the insurance companies would increase significantly. This has been posited that collaboration of the insurance companies would affect the provision of the servic es to its clients. The economic theory argues that when the number of insurance providers drops then their premium would rise due to lack of competition. In this case, it is clear that the insurance consolidation has an impact on the people since this would result in an increased healthcare provision costs. On the contrary, the insurance companies indicate a different perspective regarding the anticipated costs of the premiums. According to the insurers, an increased size of the insurance company becomes an advantage to leverage while bargaining for cheaper costs on the premiums for its clients. This thus indicate that when the insurance company increases in its size it gains a potential to forge discussion with the health care providers regarding the costs of services to the policyholders. Thus, this would affect lower charges on its customers unlike the thought based on the economic theory which posits that mergers or insurance partnering would culminate into high costs of premium due to lack of competitors. A study focused on the analysis of impact of the number of insurance providers and its impact on the costs of the premiums indicated that actually there is an effect. In the study, which analyzed the Obama, care insurance that was introduced with an aim of providing insurance services to those who could not afford the Medicare or Medicaid insurances (Ho, Lee, 2017). The Obama care was established by the Affordable Care Act, which targeted people who could not afford healthcare insurance or could not get it through their employer. The study indicated that when the new insurer was introduced into the market there was a drop in the cost of premiums by 2%. This clearly shows that the insurance companies would still affect the costs of premiums regardless of their claim that they would maintain the affordable costs to its clients. Thus, it is clear that competition is an eminent fact that would affect the availability of the premiums considering the costs associated. Based on the above figure, it is evident that the number of providers would influence the cost of premiums offered. With a higher number of the services providers, the sots of the premiums would be lower. Another study indicated similar results from the way the insurance company would affect the operations together with the health care providers (Dafny, Gruber, Ody, 2015). It is notable that with the increases number of providers for the insurance clients would benefit. This is evident since availability of more provider would be under their competition seeking to win more customers to subscribe to their premiums. In this case, they would be sensitive to the price level for the customers. It is noted that most of the customers are people with certain challenges and would want to get the services too. However, with the high costs of premiums they might not be able to secure a reputable health service since it might be too costly for them to afford. Therefore, they would be obliged to purchase the less costly one that would be available in the market. Insurance companies have a critical role to play in the healthcare service provision. Over recent times, it has been a concern to increase people access to healthcare, which was availed through the insurance premiums. This further went on, given it is business competition, each company that offered services they would want to make it appear the best to the consumers (Melnick, Shen, Wu, 2011). However, the issue has been on the sensitivity of the policyholders seeking to get the best services from the insurance companies without having to incur significant costs. Some people would not even subscribe to any health cover due to the high costs associated with them. In developing nations, healthcare insurance is one of the challenges, which does not seem to offer any assistance according to the policyholders. They believe paying their regular premiums should be associated with more healthcare services. It is noted that this coupled with other challenges that come with the insurance and t he state of persons health; it becomes unaffordable for some people. Hospital mergers have a considerable effect on the provision of health service. It is noted that healthcare providers have a significant part in the way health service would be structured and provided to the people. Public health service providers seek to offer the best services but might be faced with some issues regarding the way they avail their services to the people. Mergers and acquisitions have since been a common thing within the business field (Tenn, 2011). It has been noted to occur in companies that offer similar products and existing in a competitive market. Healthcare service providers also are involved in mergers and acquisitions with an aim to benefit from the partnership. Mergers also have the same impact on businesses as the consolidation. It is evident that businesses aimed at a certain market power and share would enter into such partnership. Mergers also profit the business organization in enjoyment of market share and profitability. When businesses merge one clea r happening is that they would seek to control the impacting issues on their market operations. Hospital mergers like other types of business would benefit from the merger since they would have significant control on their market. Hospital mergers emerge from the ?Affordable Care Act. Insurance companies, which offer health cover to people, would consolidate and become a bigger organization capable of placing unfavorable impacts on healthcare providers (Dafny, 2009). Thus, one of the significant issues that affect how the companies would react to their competitorsadvances include provision of the various services in their operations. It is noted that hospital mergers have considerable impact on the provision of health services to the people. When the hospitals merge, they would provide best and cost effective health care service. The benefit that comes to the people is that healthcare providers become integrated with other services providers. Their electronic system gets integrated so that they all provide related services to the people. Notably, different hospitals are able to get electronic records shared among all the providers. With this in regard, it is noted that the providers would ensure that there is a reduction in the level of redundancy in the provision of services to the people. On the other hand, the service provision would increase significantly, as there would be no significant variations regarding the health records of the patients. Implementation of a standardized healthcare system has made it possible to integrate significant developments towards its output. This is when all the health providers are able to coordinate in providing an equal health care service. Studies indicate that surgeons who have been in constant operation activities would be in a position to conduct successful operation unlike one who does not have regular operations. All those concerned with the provision of the same services such as surgery would base their service provision in a standardized method that seeks to ensure quality of service provision. Furthermore, advanced healthcare would reduce the number of reported deaths due to effect from the inefficiency created by those healthcare practitioners who deal with low volumes of cases. Based on the studies, it has been determined that a low number of volume of healthcare case would be related to the increased number of reported cases of deaths on patients. As a result, the standardized h ealthcare would seek to intensify the level of healthcare by ensuring that the persons seeking health services be incorporated such that even after returning from their leave, would be engaged in some related work to update their practice (Tenn, 2011). Moreover, when hospitals merge, the cost of service provision seems to drop considerably. This therefore indicates that one has to be on constant touch with the established operations to be perfect. This would reduce the number of casualties reported due to operations conducted by different medical practitioners. Both insurance consolidations and hospital mergers have significant economic effects on both providers and consumers. Consumers tend to gain when the insurance provider lowers the cost of premiums towards the health cover. This comes when the person offering the health care consolidates to become a large organization (Dafny, Duggan, Ramanarayanan, 2012). Consequently, the organization would have a capability to seek out services with the healthcare provider that would be considerate with the policyholders. On the other hand, the mergers between different hospitals also brings about increased health care services. As a result of the increased complexity and the need to have a unified service to the patients regarding the most complicated operations, it is through mergers that specialized health service has been established. With an increased capacity of operation of the insurance company, the policyholders benefit by accessing cheaper premiums while the insurance company enjoys econo mically through its negotiation with the health providers to reduce certain charges for health services covered. In this way, it is evident that the prospects arising from the insurance undertakings is of significant importance. To conclude, the insurance company does an incredible job towards the delivery of quality healthcare. The affordable healthcare to all does not seem practical since the cost implications hinder other people from accessing healthcare with the insurance companies. Merger between different hospitals benefits largely on the persons seeking healthcare. Hospitals that merge realize a significant aspect of quality that would benefit people. Because of the impact of the considerable effect of the merger between different health providers, it becomes evident that health service is improved hence would benefit the persons seeking it. On the other hand, different people would maintain the cost at a level attainable. It is therefore noted that the health care service providers would achieve a significant economic benefit when it involves potential insurers that focus on quality service provision. References Dafny, L. (2009). Estimation and identification of merger effects: An application to hospital mergers.? The Journal of Law and Economics,? 52(3), 523-550. Dafny, L., Duggan, M., Ramanarayanan, S. (2012). Paying a premium on your premium? Consolidation in the US health insurance industry.? The American Economic Review,? 102(2), 1161-1185. Dafny, L., Gruber, J., Ody, C. (2015). More insurers lower premiums: Evidence from initial pricing in the health insurance marketplaces.? American Journal of Health Economics. Ho, K., Lee, R. S. (2017). Insurer competition in health care markets.? Econometrica,? 85(2), 379-417. Melnick, G. A., Shen, Y. C., Wu, V. Y. (2011). The increased concentration of health plan markets can benefit consumers through lower hospital prices.? Health Affairs,? 30(9), 1728-1733. Tenn, S. (2011). The price effects of hospital mergers: a case study of the Sutterâ€Å"Summit transaction.? International Journal of the Economics of Business,? 18(1), 65-82. Trish, E. E., Herring, B. J. (2015). How do health insurer market concentration and bargaining power with hospitals affect health insurance premiums Journal of health economics,? 42, 104-114.

Nineteen Years A Slave By Solomon Northup - 980 Words

Twelve Years a Slave is a 1853 narrative memoir written by Solomon Northup and later adapted into the 2013 film, 12 Years a Slave. This compelling narrative contains two major themes: race and slavery. Each of these concepts is historically relevant in creating a stereotype of African Americans as uneducated lower-class citizens. â€Å"Hundreds of blacks lost their freedom through the operation of kidnapping rings,† and in 1841 Northup fell victim to one. Northup had taken to the violin at a very young age, Merrill Brown and Abram Hamilton are introduced to Northup and inquire about his talent. These men offer him a high-paying job playing in their circus; Northup readily agrees. Once in Washington and having gained his trust, the men take Northup to dinner and drug him. The next morning he wakes â€Å"sitting upon a low bench, made of rough boards, and without coat or hat,† his hands and ankles chained. This marks the end of Northup’s freedom and the beginning of Platte’s servitude. (Platte is the slave name he was given to deny him his true identity.) Northup’s servitude begins at William Ford’s plantation where he is closely watched by the overseer Tibeats. As Northup slowly earns Ford’s favor he inadvertently insults Tibeats’ pride. Extremely valuable to poor whites was class-power and pride and Tibeats does not shrink from Northup. When Tibeats tries to regain his pride by nearly hanging Northup, Northup fights back. This was a taboo in this time period; one could fight onlyShow MoreRelatedNineteen Years A Slave By Solomon Northup1493 Words   |  6 Pages Twelve Years a Slave, a memoir penned by Solomon Northup, is a poignant and extremely touching piece of literature, on the plights of an American slave. It is the autographical journey of the writer himself, and the twelve years he spent in bondage. Born as a free African American in New York, Solomon was tricked into slavery, and beaten black an d blue to when he tried to regain freedom. He worked as a cotton picker, a carpenter, a mill-worker, and faced severe cruelty. His final reunion with hisRead MoreNineteen Years A Slave By Solomon Northup Essay1737 Words   |  7 Pagesof slavery unless they have experienced it themselves. 12 Years a Slave is a phenomenal book because, being a reflection of Solomon Northup’s life, it accurately portrays the life of a black slave during that time period, including intense detail that arises a variety of emotions in the reader throughout the book. Published in 1853 in New York by Derby Miller, and written by Solomon Northup himself, his memoir entitled, 12 Years a Slave is a phenomenal narrative of the accounts he experienced asRead MoreNineteen Years A Slave By Solomon Northup2429 Words   |  10 Pagestimes that America has ever been through was the time of slavery. It has taken years for the country to recover from the atrocious time period in which â€Å"equality†, was not equal at all. The historical fiction, 12 Years A Slave by Solomon Northup, was first published in the United States of America by Derby and Miller in 1853 but the newest addition was published in 2014. The novel is an autobiographic account of Solomon himself who had been born a free man in the state of New York in July of 1808Read MoreNineteen Years A Slave By Solomon Northup1458 Words   |  6 Pages 12 Years A Slave Twelve years a slave is Solomon Northup s story of his own kidnapping and his years as a slave in middle and late 1800’s. He was born a freeman in the North, so he was not a slave. Not until he was kidnapped and taken south. His father was once a slave but was freed, which made Solomon a free man upon his birth. When he was young he would help his father farm and work with rafts, in New York. It was in upstate New York he married his wife Anne Hampton, and they later had threeRead MoreNineteen Years A Slave, By Solomon Northup, And Black Hawk Essay2336 Words   |  10 Pages12 Years a Slave, by Solomon Northup, and Black Hawk: An Autobiography, by Black Hawk, are two important accounts of life in America during the 19th century. These narratives provide insight into the history of the two largest, most heavily marginalized groups in America; thus, these stories enable further examination of the distinct institutions of prejudice laid upon these groups during the 19th century. As a result, we are able to take a closer look at the differences in motivation behind African-American

Advantages of Activity Based Costing free essay sample

In modern business environment, the use of traditional costing system is no longer relevance to the company to achieve competitive advantage. Nowadays, Activity Based Costing is considered as one of the effective tools to enhance the ability of the organisation to meet global competition. This had resulted in the change from traditional costing system to an increasingly popular costing system such Activity-Based Costing (ABC). ABC system has emerged as an alternative to traditional costing system to meet the need for accurate cost information about the products, services, customer and processes. ABC performs the arithmetic to provide accurate cost information while Activity Based Management (ABM) is focused on using this information obtained from ABC to manage activities in order to improving business (Gunasekaran et al. , 2000). Generally ABC systems enable indirect and support expenses onto each activity. Following by identify the cost drivers to measure the activity used by cost objects and allocate them to cost driver. In order word, ABC helps the manager to understand about the cost and expense in each production by giving managers a clearer picture of the economics of their operations to managerial decision making at a strategic level (Kaplan and Copper, 1998). Apart from that, in twenty-first century market which is global consumer markets and rapidly changing product technologies have forced global manufacturers to make dramatic changes in their products, markets as well as production strategies. In order to stay in the global market, organisations are advice to adopt ABC not only produces products at faster rates, but they produce with greater consistency and conformity to quality specifications. Also, ABC system allows the manufacturers to reduce the time between customer order and product delivery which can gives the manufacturer a competitive advantage in improving customer service (Gunasekaran et al. , 1999). Therefore, it is necessary for organisation to adopt ABC system which can assist managers in identifying the value-added activities which they could further improve to meet customer’s demands and enhancing the product quality and process simplification and efficiency (Marx, 2009). For example, MelCo is the company that implements ABC and gets the benefits from it. MelCo is the only manufacturer of engineering components in Melbourne. Its previous costing system was a conventional costing system where overheads were allocated to products based on labour hour utilised (Sohal and Chung, 1998). However, management found that implement ABC system in the organisation is seem to be useful because it can assist high level of flexibility and responsiveness that demanded by the marketplace. Besides, ABC system can generate true costing and pricing which automatically give performance measures and product profitability as well as provide a variety of information for management in strategic decision making. Even though it incur high cost, MelCo think that it is worthiness because it provides a tool for management for commercial decision making although it just implement for 12 months (Sohal and Chung, 1998). Due to the changes of business environment, the company requires to manufacture very wide product range for a large customer base with high quality and innovative products in order to fulfil the demand of the consumer. By implementing ABC in organisation, ABM guides efforts to adapt business strategies to meet competitive pressures as well as to improve business operations. ABC information enables ABM to yield continuous improvement process. By continuous improvement, organisation can yield the maximum profitability as well as improved the customer’s satisfaction (Gunasekaran et al. 2000). Nowadays, customers want products and services that fit their specific needs; they want quality service at affordable price to be right now. However, since traditional costing system is volume-based, inaccurate information will be generated which lead to company make wrong decision (Gunasekaran et al. , 1999). Apart from that, stable product and mass production are no longer valid for today manufacturing system. Thus, manufacturing companies have reduced the implication of traditional cost accounting system by implementing ABC systems. In contrast to standard costing, ABC can identify value-added and non-value-added activities. To clarify this, all activities should be compared with similar activities in another company or within the organisation in order to perform the best. Hence, benchmarking should be encourages to be carried out for both value-added and non-value added activities because it is a best practice which is mostly used in real-life situation (Gunasekaran et al. , 1999). For example, 100% on time delivery of customer orders is an essential activity. Apart from that, non-value-added activities such as inspection and material handling can be reduced by using different quality assurance methods and techniques such as total quality management and just in time. With ABC, the company has a better access to decision which related to TQM and JIT (Gunasekaran et al. , 1999). To achieve cost reduction in a strategic way, activity-based costing presents to be more accurate in determining costly activities in order to help companies to better manage those activities. Unlike the information available under traditional management accounting, ABC systems are capture the significant information among customer orders and provide strategic decision making with the indication of the changes in the customer’s specifications (Lere, 2000). By implementing ABC system, it also can reduce non-value activities as well as cost of their products to compete in today competitive market. Non-value added activities can be eliminated with the implementation of strategies such as total quality management, just in time and business process re-engineering. Managers should pay more attention to those activities which will incur high cost but does not add any value to the product. Besides, managers prepared with the ABC systems were able to reduce overall costs, identify the opportunities for continuous improvement of the products. Nowadays, technology plays a dominant role of integrating various functional areas. Although the automation in advanced manufacturing environment has reduced the labour component, at the same time overheads have increased (Gunasekaran et al. , 1999). Therefore, in manufacturing environment, it is necessary for organisation to minimize non-value adding activities to reduce the cost of their products to compete in the market. By implementing ABC system in organisation, it will help to reduce direct labour component, increase in overheads as well as productivity of knowledge workers. Apart from that, ABC also helps organisation in better communications and team working environment as well as reduce time required to perform an activities due to knowledge workers and re-engineering the suggestions by employees to reduce the non-value activities (Gunasekaran et al. 1999). In contrast, the traditional costing systems do not provide non-financial information such as defect rates, level of quality about the organisation. However, implementation of activity based costing is not an easy task as there are several difficulties in implementing ABC system. One of the first fundamentals for the success of an ABC implementation is top management support for the project (Zhang and Che, 2010). The failure of ABC projects can generally be attributed to lack of visible and active management. If the organisation’s senior managers do not show the commitment and act passive in the program, it will negatively reduce the motivation of the employees. Apart from that, the productivity of the employees will also affect as well. Therefore, top management should be give full support with clear understanding of goals and objectives of the whole organisation to the employees. Besides, they should meet regularly in order to advise the management on the strategic and technology business problems (Gunasekaran et al. , 1999). Commitment of employees is one of the important factors in implementing ABC system. For the successful implementation in ABC, the employees must have a clear understanding of its capabilities, goals and objectives (Zhang and Che, 2010). As a result, education and training are necessary for the employees to make sure that they understand the objective of ABC system. When the employees are well trained and educated, they can easily reduce the time and effort required to perform an activity, on-time delivery as well as reduce the cycle time of the product. Also, employees should be provide with internal and external company training facilities to ensure them gain latest knowledge and trend in order to maintain company’s standard in today global market (Zhang and Che, 2010). For example, MelCo is a company that implementing ABC system and it found that the problems during implementation was lack of available skills in-house which means that they do not have considerable amount of education and training. Therefore, MelCo are recommended that training of employees should be taking into consideration (Sohal and Chung, 1998). As a conclusion, the changes of global business environment had changes the way of the company doing the business and shift traditional management accounting to strategic management accounting for cost management in organisations. However, it does not means that traditional management accounting is usefulness and not applicable in today business environment. Relevance of traditional cost accounting is very subjective in each view of the organisation. It may be suitable for some companies treated standard costing and variance analysis as a tool that enhances planning and control and improves performance evaluation rather than abolished it. To compete in today business environment, strategic management accounting is the most suitable accounting system for the organisation as ABC method can provides more accurate and better cost information which can helps manager to understand and make strategic decision making. Furthermore, ABC system can eliminate the non-value added activities which added value to the product cost, by doing so, organisation can reduce those unnecessary costs. Thus, ABC system is most appropriate management accounting costing in today business environment. However, there are several problems and difficulties in implementing ABC system, company should take into consideration when implementing ABC in order to maximize the fully benefits for ABC systems.

Makes A Binding Legal Contract Amid Parties â€Myassignmenthelp.Com

Question: Discuss About The Makes A Binding Legal Contract Amid Parties? Answer: Introduction The present assignment aims at understating the law of contract and the main elements that are required in order to make a valid and enforceable contract in law. These elements are applied to the given factual solution in order to have a better understanding of the contract elements. There are three major issues that are framed as per the facts provided and all the issues are dealt separately. The Assignment is prepared with the help of ILAC format, that is, Issue, business Law, Application and Conclusion. The assignment is supported with references. Whether there is a valid contract that is framed amid Damien and Alen. If yes, when the contract was framed amid the parties. In order to resolve issue, the concept of offer, acceptance and invitation to offer needs to be understood. It is assumed that the other elements of contract, that is consideration, legal intention and capacity of the parties are present in the given situation. Any management in law which has the sanctity under law is called a contract. In Australia, a contract is a binding document upon the parties and the parties must honor the terms of a contract. However, in order to formulate a valid contract there are few ingredients that needs to be comply with. The same are offer, acceptance, intention, consideration and capacity of the parties. An offer is the intention of the offeror which is transferred to an offeree through whom the offeror desire some act or omission and expects that the offeree will approve the same (Gibson v Manchester City Council, 1978). An offer can be made to specific group of people or an individual or to the world. Any kind of offer is valid provided it is made ether orally or in written formal but must be communicated to the intended persons. (Jennifer, 2001) The offeree when gave his confirmation to the offer which is so received by him through an offeror then it is called an acceptance in law (Felthouse v Bindley, 1862). An acceptance can be made either orally or through written means or through conduct, but, it is necessary to communicate the acceptance. If the acceptance is not communicated then there cannot be any acceptance on the part of the offeree and there cannot be any contract amid the parties. (Robert Bibi, 1998) When offers are invited from people then it is called an invitation to treat. In an invitation to treat there is no offer, but, the inviter invites the offers from specific people. When the inviter accepts the invitation (offers) so received then there is a binding contract amid the parties (Pharmaceutical Society v Boots Chemists , 1953). The facts reveal that Alan is the student of a University and is intended to sell of his text book Introduction to Business Law in Singapore. In order to sell the textbook he posted a post on his facebook page on 1st November 2015. He submitted that that all of his friends who are enrolled in Kaplan Higher Education may purchase his textbook and his classroom notes for a price of $ 200 and people who are interested must pay by 5th November 2015. It is submitted to initiate any contract it is necessary to make an offer. However, Alan has posted a post on his facebook account and as per (Pharmaceutical Society v Boots Chemists , 1953) an advertisement is not an offer in law. It is an invitation thus, Alan has made an invitation to treat. Also, the invitation is made to a specific class of persons, that is, the friends of Alan who are enrolled in Kaplan Higher Education. Thus, the offers must be received from such class of person only as held in (Carlill v Carbolic Smoke Ball Company, 1892). Damien is not the friend of Alan but is the friend of Bernard. He is enrolled in Kaplan Higher Education. But, the invitation is made only to the friends of Alan on facebook. However, he took the number from Bernard and sends an SMS to him wherein he offered that he is interested in buying the book and can he handover the money to him on 4th November 204. Though the invitation is only for the friends of Alan, however, an independent offer is made by Damien to Alan wherein an offer is made. Now, it is only if Alan accepts the offer of Damien that there is a binding contract amid the two. In the evening of 4th November, Damien saw Alan and handed over the money to him which was duly accepted by Alan. Thus, an accepted can be communicated thorough conduct. Thus, when Alan accepted the money there is communication of acceptance on the part of Alan. So, there is a binding contract amid the parties So, it is found that an offer is made by Damien to Alan which was duly accepted by Alan. Thus, there is a valid contract that is made amid Alan and Damien. It is thus concluded that there is a valid exchanged of offer and acceptance amid the parties. so, the contract is made at the moment when on the evening of 4th November, Alan accepted the money from Damien and promised him to transfer the book by 7th November. Thus, the contracting parties are Damien and Alan. In the given situation, the concept of offer, acceptance and counter offer is very relevant. It is assumed that other elements of contract are present in the given situation. An offer is the intention of the offeror which is transferred to an offeree through whom the offeror desire some act or omission and expects that the offeree will approve the same (Gibson v Manchester City Council, 1978). Also, The offeree when gave his confirmation to the offer which is so received by him through an offeror then it is called an acceptance in law (Felthouse v Bindley, 1862). However, when no acceptance is given by the offeree, but, the acceptance is given in the form that it brings variation in the terms of the offer, then, it is no acceptance in law and is called counter offer. When a counter offer is made then the original offer lapses and the counter offer becomes the new offer. This new offer when approved by the old offeror (which is now the new offeree) results in a binding relationship amid the parties. In the leading case of (Hyde v Wrench, 1840), the concept of counter offer was rightly establihed. The law is now applied to the facts of the case. The facts reveal that Bernard is the friend of Alan on the facebook and is enrolled in Kaplan Higher Education. Thus, as per carlill, Bernard is eligible to make an offer to Alan as the offer is only for person who are the friend of Alan on facebook. Now, on 2nd November he made an offer of $ 150 by posting a post on the facebook of Alan. Thus, a valid offer is made by Bernard, but, a contractual relationship will only arises provide Alan must accept the offer of Brand and the same must be communicated to him. The offer of Bernard was rejected by Alan by replying that he is not interested in selling the book below $ 200. Thus, the offer of Bernard was rejected by Alan. It makes no difference even if Bernard sends the money to Alan through post, because the acceptance that is later made by Bernard is against the offer which is never made by Alan. Alan only made an invitation and there is no offer that is made by Alan at the first place. Thus, an operations against no offer is invalid in law. So, there is no contract that aid Alan and Bernard. The law dealing with capacity of the parties and intention of the legal parties is the relevant law that is applicable in the given situation. All other elements are presumed to be present. Once an offer and acceptance is made, then, it is necessary that the communication must be made with the legal intention to abide by the promises. If the promises are made with no legal intention then there is no contract amid the parties. In (Balfour v Balfour , 1919), it was held that when the parties are in social relationship then it is presumed that there is no legal intention amid the parties and when the parties are in commercial relationships then there is legal intention amid the parties to establish a contract amid themselves. But the presumption which is generally raised by the law is rebuttable ad it can be proved that the parties does have legal intention when the parties are in social relationship and there is no legal intention when the parties are in commercial relationship. Now, when the parties are exchanging offer and acceptance then it is necessary that there must be consideration that is attached t the same. A consideration is the price for the exchange of the promises which moves from the promisor to the promisee. It is very necessary as it make a contract enforceable in law. (H.K.Luke, 1970) Also, the parties must be capable to enter into a valid contract the parties are capable when they are major and has mental capability to make a contract (Gibbons v Wright, 1954). The younger sister of Alan, Charleen, is taking GCE O levels this year. She is also on the facebook friend list of Alan. Thus she is also eligible to make an offer against the invitation of Alan. So, on 2nd November 2015, when Alan was in bed, Charleen offered Alan to buy the book for $ 200. It is submitted that in order to make a contract, the parties must be capable to make a valid contract. It is submitted and presumed that Charleen is not a major and thus she is not eligible to make an offer. So, the offer made by Charleen to Alan is invalid. But if a contract is made with a minor then the same is valid provided it is for her necessity, Now, Alan smiled at Charleen and gave his assent without any legal intention. However, in law, the offeror and offeree must also have legal intention to be bound by the contract. If the parties do not have legal intention there is no contract. Now, when the assent is provided by Alan to Charleen then at that time Alan was not having any legal intention to accept the offer of Charleen. Thus, as per (Balfour v Balfour , 1919) there is absence of legal intention and there cannot be any contract amid Charleen and Alan. Even if it is considered that Charleen and Allen had legal intention to bind in a contract, stil, since Charleen is taking O level thus she is a minor and as per Gibbons v Wright there can be no contract with minor. So, in any of the cases there can be no contractual relationhsip amid the two. Conclusion It is thus concluded that there cannot be any kind of relationship that existed amid Alen and Charleen mainly because Charleen is a minor. Also, there was no legal intention that was present by Alen which marketing a binding legal contract amid the parties. References Balfour v Balfour (1919). Carlill v Carbolic Smoke Ball Company (1892). Felthouse v Bindley (1862). Gibbons v Wright (1954). Gibson v Manchester City Council (1978). H.K.Luke. (1970). The Intnetion to create legal relation. The Adelaide business Law Review . Hyde v Wrench (1840). Jennifer, C. (2001). Contract Law in south Pacific. Cavendish Publishing. Michael, L. (2013). The Future of Dispute Resolution. LexisNexis Butterworths. Michael, L. (2013). The Future of Dispute Resolution. LexisNexis Butterworths. Pharmaceutical Society v Boots Chemists (1953).

A Shocking Accident Essay Example

A Shocking Accident Essay â€Å"A Shocking Accident† Essay Graham Greene wrote a short story called â€Å"A Shocking Accident. † A nine year old boy named Jerome is told that his father has died in an accident and the only thing he could ask was â€Å"What happened to the pig? † Greene makes it known in this short story that humans are irrational and meaningless. Selective detail is used to enhance the theme that men are disconnected. Jerome’s father barely cared for his son and Jerome barely cared for his father. Man only care for themselves and Jerome will grow up to be just like his father. Jerome’s father did not care about his son so he sent him to an expensive private boarding school called Eton. In doing this, he would not have to communicate in any way with Jerome. His father would occasionally send Jerome a picture-postcard but postcards were little notes that said inconsequential things. This showed that his father did not even want to take the time to write a letter to his only son. In return Jerome kept â€Å"an album fitted with picture-postcards (the stamps had been soaked off long ago for his other collection)† (1080). Jerome did not care for his father and he only kept the postcards and stamps for his collection. We will write a custom essay sample on A Shocking Accident specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on A Shocking Accident specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on A Shocking Accident specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Jerome and his father are both void of meaning. Mr. Wordsworth summoned Jerome into his office and he told Jerome that his father has died in an accident. Jerome showed no expression of concern and he asked â€Å"Did they shoot him through the heart? I beg your pardon. What did you say, Jerome? Did they shoot him through the heart? † (179). Mr. Wordsworth was surprised by Jerome’s response to the news. Mr. Wordsworth than tells Jerome that a pig has fallen on him and â€Å"an inexplicable convulsion took place in the nerves of Mr. Wordsworths face† (179). Death is not a laughing matter, yet the housemaster is trying to hold back his laughter. After this incident occurs, the students at the school begin to call Jerome â€Å"Pig. † They do not understand or consider the situation of losing someone. In addition, at the funeral, Jerome’s Aunt could only say that her brother was a great traveler and that he always carried around a water filter. It is obvious that the Aunt does not care or know anything about her own brother besides the fact that he carries around a water filter. These selective details demonstrate how man does not care about other man. Jerome was more worried about the pig than of his own father. Jerome grows up to be just like his father. He becomes an accountant and he meets a girl named Sally. He married Sally because she would not interfere with his job, her father was a doctor, and she liked babies. Sally â€Å"adored babies ever since she had been given a doll at the age of five which moved its eyes and made water† (182). Sally likes babies because she liked her fake baby doll, but dolls are nothing like real babies. When Jerome tells Sally how his father died, Sally says â€Å"Happening like that. Out of a clear sky† (183). It is apparent that Sally did not care about Jerome’s father because the clear sky has no logical connection with the pig killing someone. These selective details prove that men are disconnected. Sally is the same way as Jerome. They are both void of meaning and disconnected. Greene says that men are disconnected and void of meaning because in the 20th century, humans kept on attempting to destroy each other. There was WWI, WWII, mass starvation, and depression. He used selective details to show that men do not care about each other. The housemaster laughed at the tragic accident and the students called Jerome â€Å"Pig. † Jerome didn’t care about his father and vice versa. In the end, all Sally could really ask about the accident was â€Å"What happened to the poor pig? †

Candide or Optism, Voltaire essays

Candide or Optism, Voltaire essays War can be one of the most devastating occurrences on earth. It is war that destroys the lives of many people, families, and countries. Whats done to one person can ruin the lives of many others. This is expressed in the book Candide or Optimism. In this book Candide is torn from his love, Cunegonde, and looks for her for the rest of his life. He believed that she was killed in a war. Voltaire expresses many of his thoughts in this book through Candide. He does not believe in war and he outlines some of the effects of it in this book. Wars many sounds can be very frightening and loud. Trumpets, fifes, hautboys, drums, cannons, formed a harmony such as has never been heard even in hell (Voltaire 7). I think that Voltaire is trying to express the sounds of war and how horrifying they are. He makes a connection here between war and hell, which shows he believes war is a horrible thing. I feel he is right; war can be a disaster in many cases and hearing one would be horrible. Voltaire also expresses his feelings through Candide in many instances. Candide, who trembled like a philosopher, hid himself as well as he could during this heroic butchery (7). I think that Voltaire is showing how feels against war. He doesnt want any part of it. He also refers to it as a heroic butchery. I believe that here he wants to give the idea that this war is like a murder, with the armies involved in it just killing for the sake of being heroes. I agree with him here. Many wars were fought just to show how much of a hero a person is able to be. I think that if a battle has to take place, there has got to be a good reason for it. There should never be a battle if it can be avoided in some way. At last, while the two Kings each commanded a Te Deum in his camp, Candide decided to go elsewhere to reason about effects and causes (7). I thin ...

Derivatives And Risk Management Essay Example | Topics and Well Written Essays - 2750 words

Derivatives And Risk Management - Essay Example Risk management is the process of identifying, understanding, analysing, accepting, or mitigating risk. Risk management can be divided into two main processes, determining the level of risk exposure in an investment and then handling that risk in the best way possible in line with the objectives of the investment (George, 2012, pp.34-38). The risk of financial exposure affects all organisations, both directly and indirectly. Though financial exposure presents the opportunity for loss, it may also present strategic benefits for making profits. The financial losses of a company arise from three main sources. The first source of risk is a company’s exposure to changes in the market prices of commodities (Philippe, 2001, pp.23-25). Second is through actions and transactions of third parties such as creditors and counterparties to derivative transactions, and finally are financial risks occurring from the internal failures of the organisation, people, or processes. Financial risk arises from countless transactions of a financial nature which an organization engages in such as purchases, investments, and loans repayments. If financial prices rise, there is the possibility that the company makes financial losses (Philippe, 2001, pp.3-6). ... Financial risk management usually involves the use of derivatives which are traded widely among financial market players. A derivative is a security whose price is derived from one or more other assets. It is just a contract between two parties specifying conditions under which payments will be made in future between the two parties. Examples of derivatives are options, futures, forwards, and swaps. In the past, diversification was the main way of financial risk management but has now been overrun by the availability of derivatives in most markets which makes it possible for both corporate as well as individual investors to manage risks (Whittaker, 2009, p.19). This paper will analyse the concept of hedging in financial risk management, the best hedging strategies, swaps, and options as they are used in risk management. 2.0 Hedging Vs. Speculation The management of risks involves the use of derivatives. Derivatives in financial risk management refer to securities whose value depends on the value of the underlying asset. Among the kinds of derivatives that exist in financial market includes futures, forward contracts, option, and swaps (Smith & Stulz, 2009, pp.267-284). The underlying assets whose values the derivatives depend on are stocks, bonds, interest rate, foreign exchange instruments, and even commodities. The respective derivatives for these assets are stock options, interest rates futures, currency futures, bond options, and commodity futures. Hedging is the strategy that is used when managing the risk of the underlying asset using derivatives (Nance, et al, 1993, pp.267-284). In financial markets, a hedge can be referred to as an investment position whose purpose is to offset a potential future