Introduction
In order to understand the effect on economics on the business, it is important to understand its definition. Economics is ‘the social science that studies the choices that individuals, businesses, governments and entire societies make as the cope with scarcity, the incentives that influence those choices, and the arrangements that coordinate them (Sullivan, 2011).’ This paper will discuss the impact of product liabilities on the business. Because economics impacts our daily lives, it is important to understand how the goods being provided satisfies our needs. The factors of macro and micro economics, which are 2 sections of economics and the effect on business, will also be discussed.
Factors of Microeconomics
In microeconomics,
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Some of these are: the economy, the government (interest rate, inflation, change in policies and regulations). These factors directly impact the production and operations of a company. Economic Status. The economic factor is very important in determining the ‘…business strategy in the organization for formulating, implementing and controlling…(Verma, 2012),’ operations. The change is consumer’s income affects the sales and production of goods. For example, an increase in income snowballs into easy access of a credit line, which then increases production of goods and sales. On the other hand, if a business is having difficulties getting a credit, the operations of the business is greatly affected: spending is reduced, goods production is greatly reduced and people lose their jobs. This is one of the reasons why ‘…money market…has been closely monitored by both central banks and analysts (Dewachter & Iania, …show more content…
In this case, the business was proved to have carelessly produced a product that resulted in an injury. This negligence usually happens in the production phase, where a product is not properly assembled, tested and checked for quality prior to releasing the product into the market.
Misrepresentation. A company can be sued if the released product has been misrepresentation or false information has been provided regarded the product and the user was injured as a result of the representation. Companies must provide warning labels on their products. Failure to do so can be construed as misrepresentation of the product and lead to civil action being taken against the company.
Strict liability. Strict liability ‘…makes manufacturers, distributors, wholesalers, retailers and others in the chain of distribution of the defective product liable for the damages caused by the defect (Sullivan, 2011).’ABC complete Kitchens must carefully consider partnering with businesses to distribute their products, as that can constitute a liability for the
If consumers have purchased particular products that have been recalled, consumers have certain rights depending on the way the recall is conducted. Generally, if products consumers have bought get recalled, consumers are entitled for a full refund, a suitable replacement product of the same value, or a modification or repair of the product (Recalls Government Australia, 2013).
First let us define negligence. “Negligence occurs when someone suffers injury because of another’s failure to live up to a required duty of care. The risk must be foreseeable, it must be such that a reasonable person performing the same activity would anticipate the risk (Miller, 2013).” For Myra’s claim of negligence to be proved her team must prove duty, breach, causation, and damages. Our defense will be based on Myra’s assumption of risk as a judge, contributory negligence, and comparative negligence.
The state of the economy is important both on a micro and macroeconomic level. On a macro level, those in government pay close attention to these statistics in order to guide fiscal and monetary policy. On a micro level, households can use this data to guide their consumption and investments, while businesses can use this information in their strategic planning. In looking at economic information, there is current data, historical data, and economic forecasts. This enables decision makers to get a more complete picture of economic trends and see the relationship between various economic indicators.
On the 1st of October in the year 2017, the defendant, in this case, the supermarket was found liable for the case Susan injury in the supermarket's premises. The hip injury on Susan’s hip which was a result of the slipping over a squashed banana. The presence of the squashed banana in the premises was an outright sign of negligence and recklessness by the supermarket's staff. (Damage law)
We may become subject to product liability claims, which could harm our financial condition and liquidity if we are not able to successfully defend or insure against such
Negligence, as defined in Pearson’s Business Law in Canada, is an unintentional careless act or omission that causes injury to another. Negligence consists of four parts, of which the plaintiff has to prove to be able to have a successful lawsuit and potentially obtain compensation. First there is a duty of care: Who is one responsible for? Secondly there is breach of standard of care: What did the defendant do that was careless? Thirdly there is causation: Did the alleged careless act actually cause the harm? Fourthly there is damage: Did the plaintiff suffer a compensable type of harm as a result of the alleged negligent act? Therefore, the cause of action for Helen Happy’s lawsuit will be negligence, and she will be suing the warden of the Peace River Correctional Centre, attributable to vicarious liability. As well as, there will be a partial defense (shared blame) between the warden and the two employees, Ike Inkster and Melvin Melrose; whom where driving the standard Correction’s van.
U.S. financial markets assume a vital part in helping the wellbeing and productivity of the economy, businesses, and individuals. There is a solid relationship between the soundness of the economy and budgetary business improvement and monetary development, resulting in the slightest change in financial markets greatly affecting the economy, businesses, and individuals. Financial markets influences the increase in capital, removes the risk of subsidiaries, and liquidity in currency markets. When the monetary markets are doing admirably, "firm-level, industry-level, and cross country considers all propose that the level of money related advancement applies an expansive, positive effect on financial development." (MIT, 2001)
Notably, the class of potential defendants in a product liability is extensive; it may include everyone in the distribution chain of the product (Wong 2010). The defendant may range from the manufacturer of the product to the seller or the lessor of the product. In addition, anyone who services the product or installs the product after purchase may stand liable in the event that the product is defective. Principally, the basis of action in a product liability litigation are the negligence, intent, strict liability, breach of implied warranty of merchantability, and general misrepresentation (Wong 2010). In practice, prosecutions in product liability have significantly relied on the Third Restatement of Torts, on section 402A
Macro-Economic Factors that Affect a Business There are macro-economic factors which affect a business and there implications need to be considered when planning ahead. The interest rate is the basically the cost of borrowing, the price of money. If money is borrowed it is the percentage over and above the original loan that has to be paid back. The interest rate is a vital tool of economic management for the government. Adjusting the interest rate is a key part of the government’s monetary policy.
The economy plays in the part of how money is made. The turnover ration plays a role for hiring and layoffs. An organization can not run productively understaffed. Therefore, there can be no set way to run a business according to the books. The third factor is the leadership factor.
Economic conditions affect how easy or how difficult it is to be successful and profitable at any time because they affect both capital availability and cost, and demand (Thompson, 2002). If demand is buyout, for example, and the cost of capital is low, it will be attractive for firms to invest and grow with expectations of being profitable. In opposite circumstances firms might find that profitability throughout the industry is low.
The article provides examples of companies that have faced the crisis. For instance, the premium position captivity reason was among the main factors causing Levi Strauss to lose its share of market. ...
Noel, Dix. “Defective Products: Abnormal Use, Contributory Negligence and Assumption of Risk” Vanderbilt Law Review. New York: Bedford/St. Martin’s, 2002. 313-23. Print.
The career I choose to pursue is the career of Business Administration. This career consists of running a small or big business and being able to run it and be capable of making small or very important decisions. A business runs and depends on the people and how people spend their money. If people spend their money responsibly and they know how to administrate their money and will make the economy to be stable and be good. As we all know, the economy has been really bad for the past year and it has made millions of people loose their homes and their jobs. The economy is a big factor in this career and it could be a huge problem that can be faced for a long period of time and more than once.
In this write up the focus is mainly on e-business. It consists of critical discussion and analysis of the impact of adopting e-business orientation. It also contains relevant information on the current state of e-business market.