Contract

Introduction

Airbus is an aircraft industrializing subsidiary of European Air Space Company. It is situated in France with considerable action across Europe. It is one of the companies that manufacture approximately half of the total production of the world’s jet airliners. It started as association of aerospace producers. Over the years, the EU has been dedicated to subsidies and offers a soft loan to the airbus of which the United states WTO has been against it for so long.

The paper will look at the theoretical and practical aspect of the subsidies and the loans given to the airbus company, it will give how unfair or fair the offer is, how the World Trade Organization subsidiaries agreement basing on the united states military contract with Boeing amount to subsidies, where the systems provided by the state of Washington to Boeing is fair to the company and how the company management will react when the WTO stop providing subsidies and soft loans. The doing this, the paper will try to analyze the situation as it is on the ground. On doing this, we have to consider that the Airbus company is in stiff contest with the Boeing for the aircraft orders in the countries.

EU Subsidies and Soft Loans to Airbus

Basing on the support being offered to the Airbus Company by European Union through the financial assistance and the soft loans, the paper do support or encourage the practice. This has been to the consideration of the other benefits that the competitors are getting of which the Airbus are not subjected to them (Bureau of National Affairs Washington, D.C 2007, pp 882). For instance, the Boeing company do get the competitors have been awarded the pork barrel military contracts of which is known to be the 2nd biggest united states defense contractors in the country, this gives them the chance to operate better without any financial constraints at their workplace. Other than that, the competitors are subjected to the support from the NASA which is one of the technologies development of which the Airbus do not get.

None the less, the Boeing Company gets the large tax break thus making them to make more profits as compared to the Airbus Company. This has been a threat to the Airbus leading them to search for some of the financial supports else where. This is when the European Union came in to assist them in giving them some of the support together with soft loans to establish themselves to give them a better chance to compete with the Boeing Company in the market.

The supports have been of more advantageous to the company, it has enabled the company to be able to compete adequately with the competitors in the market; this has to the introduction of the A350 in the company through the use of the soft loans given to them by the EU. Other than that, it has enabled the increase in the market share for the company.

WTO Subsidies Agreement on US Military Contracts with Boeing

Under the WTO subsidies agreement, United State military contract with Boeing; it tends to amounts to subsidies in one way or another. This is because the type of the payments that the company is offered with tends to give them a very unfair advantage over their counter parts the Airbus Company. This is because, the contract being a government offer, they were subjected to more offers that even allowed them be tax free and even to be subjected to financial assistances such as the NASA that is one of the technologies development firm in the country. This allowed them to be able to come up with better aircrafts that gave them a better chance in the market than the competitor.

This support by the NASA and the Defense department offers the company with the more facilities such as the use of the testing equipments and facilities at no cost whereas the competitors are subjected to pay for the services that they get for them (Zahariadis, 2008, pp 79). This tends to be unfair as Boeing is subjected to get more interest and thus allowing them to upgrade in standard faster than the Airbus.

Infrastructure Development and Investment Incentives Provided By the State Of Washington to Boeing

In conjunction with the financial supports that Boeing Company has been getting, they have also been entitled to more infrastructure development and investment incentives. This has been unfair to the competitors as it gives them totally unfair competitive advantage. This is top the fact that, with the incentives of free services by the government to the Boeing, the company has lowered the market of the competitors, and its reduction on the number of sales that they get (Zahariadis, 2008, pp 78).

This is because, the Boeing government after getting the free services and facilities, they tend to reduce the cost price of their goods and services thus luring more customers to them, whereas the competitors have to cost for all the expenditures that they inquire in their company thus leaving them with high priced goods and services that the customers tend to avoid.

The European Union’s Vested Interests in Continuing to Support Airbus

Regardless of the fact that the Airbus can or can not compete in the market with or without the subsidies and loams, the EU has no intention to discontinue their support to Airbus company. Their vested interest in continuous support has been to provide fair competition in the aircraft market in the country (Bureau of National Affairs Washington, D.C 2007, pp 882). And they can only achieve this by trying the much that they can to ensure that all of the competitors in the market get all that it takes to make them competitive with the colleagues in the market.

This is as per their vision to avoid monopoly in the market of manufacturers of aircrafts in the world. Thus, regardless of the time that Airbus will take to establish them to be able to compete in the market, EU is ready to offer them with the subsidies and loans to establish them.

Airbus Management Respond to WTO Rules against Subsidies and Soft Loans

In the event when the World Trade Organization rules that the EU have to stop their support of subsidies and soft loans to the Airbus, the management will be forced to come up with a better strategy that will enable them to sustain their position in the aircraft manufacturers in the market. With this, they will have to demand for fairness in the government support in the companies involved in the manufacture of aircrafts. This will give them the same opportunity with Boeing and thus able to compete.

Other than this they will be forced to reduce the cost of the expenditure of which will give them a better chance to increase their input in the company.

References

Bureau of National Affairs (Washington, D.C. (2007) International Trade Reporter Vol 23 No 1-26 pp 882 University of California Bureaus of National Affairs Press

Zahariadis, N. (2008) State Subsidies in the Global Economy pp 75-85 University of California Pal Grave Macmillan

According to the movie, Ben Carson grew up from the poor family with his mother is non-education. She is only a maid in the rich man’s house. One day during cleaning his house, Ben’s mother learned that reading a book is better than spending the time in front of television. She suddenly got back home to force her children to spend their time in the library every day. They also have to summarize what they got from the books. This is the beginning of pulling Ben’s intelligence out.

Another one day in is science class, the teacher asked his student about how to find the solution of the Log. There is no one can get the right answer, but Ben who know how to get the result of Log. He surprised everyone with realizing he is not a stupid boy. In the university life he got a scholarship from Yale University. He became very the youngest neurosurgeon doctor. After his first successful surgeon by separating conjoined twins joined at the head he is very popular in the medias. Reflection – (A few lessons I learnt and how I can apply them to my degree at UNC)

There is no final destination for studying In our life. It Is our choice to study In anytime and anywhere from the books. The more we read the more we get knowledge from the world. Books can open your mind and pull out your Intelligence and ability. From now on, I think the best way to Improve my own life Is reading more than yesterday. During my master’s life In UNC, I will spend my time In the library more than another place. Keep going and keep reading might make my life here easier.

Business enterprises are essential part of a country’s society. Growth in the business industry would in no doubt lead to the society’s advancement as well as advancement in the country’s economy. The responsibilities and contribution of these businesses in the society is set by government laws and it is also through the provision of these laws that this sector of the society is being protected.

The constitution of the United States had put into legislation the bill of rights in order to protect and respect the right of every individual in the state. Several amendments were made under the said bill. Whether as an individual, group of person or in business, these amendments must be fully exercised. Taking our focus on the effects of bill of rights in the society, it can be said that almost all of the amendments have a substantial impact on business.

This paper would focus on the first and fifth amendment of the bill in relation to the condition of the business sector. The following are the statements of the first and fifth amendments respectively:  “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances” .

“No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a grand jury, except in cases arising in the land or naval forces, or in the militia, when in actual service in time of war or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation”

Free Exercise of Religion in the Business Industry In the written report cited in Pew Forum on Religion & Public Life, it was shown that the United States is a home for numerous religious affiliations with 78. 4% being affiliated to Christian religion, 16. 1 % unaffiliated and 4. 7% affiliated to other religions (Muslim, Hindu, Buddhist, Jewish, etc). Involvement of individuals coming from these various religions has different approaches or style upon dealing with business transactions.

The first clause of the first amendment which states that “the congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof” protects the businesses of these various religious groups to freely exercise their beliefs in conducting business. The government can not simply dictate or force any business establishments to stop their practice (which is link with religion) for this is a complete violation of the first amendment.

Respect for the different religions in the state eliminates the discrepancies that somewhat trigger unjust treatment. The government should not favor a specific religion and question their beliefs and practice. Provision of the first amendments can also be link to minimizing the discrimination in terms of religion in business. Discrimination had always been a point of discussion inside the congress. It is a common fact that discrimination on the basis of religion had been exercise in different business establishments.

Whether concerning hiring, promotion or firing personnel, discrimination is vividly seen and executed. Such discrimination is also seen when institutions are made to violate a fundamental teaching of their religion in exchange of the pursuance of their business. This social evil is needed to be eradicated for it entails a lot of loss. The most important loss that discrimination may bring is loss to the economy. Deterring a business establishment (which may be more likely to progress) would entail a negative effect on the national economy.

With the aid of the first amendment and the title VII of the civil rights act, religious groups would be protected against discrimination. Freedom of Speech and the Business Industry The second clause of the first amendment deals with the freedom of speech which basically has a substantial effect in business. This freedom (speech) allows the business enterprise to promote and advertise their products. The United States has always been known as a free country where every citizen, business and religious groups enjoys the privilege of liberty.

Focusing on the business industry, having the freedom to promote their products in such a way that they perceive it is indeed advantageous. The law guarantees the right to every enterprise to express their thoughts and ideas as long as these do not harm any individual or other enterprises (The Bill of Rights). Advertising is most likely the common way where businesses can exercise their freedom of speech. In the speech given by Rukeyser she regarded advertising as a symbol of freedom (497).

Having this freedom however, doesn’t mean that business enterprise are entitled to say false things regarding their products or services but instead, exercising freedom in advertising is incline in using ‘fact-finding tools of accounting to bring out the objective truth and to retell that truth interestingly, creatively and simply’ (Rukeyser 498). Telling things that are untrue has certain consequences and this eventually violates the rights of consumers. Freedom of speech can also take the form of non-speech (Bill of Rights).

The choice of businessmen on the type of business that they would like venture in is a manifestation of non-speech freedom. Such choice brings forth the idea of economic freedom. In exercising economic freedom, businessmen employ the ‘right to start or discontinue their business, the right to choose technology, the right to invest and save in any way and the right to produce products and to offer it for sale at any price’ (Price 651). The freedom of speech had granted several rights for any business enterprise to take in control of their industry as long as fair trade is being practiced and the rights of the consumers are not being violated.

The Due Process Clause and the Property Clause of the Fifth Amendment While the Fifth Amendment can be subdivided into several clauses, two clauses under this amendment are considerably significant to the business sector. The due process clause which explains that unless proper steps are done, the government is not employed with the right to ‘take off anyone’s life, freedom or property,’ gives everyone a fair chance to defend their side (Bill of Rights).

Complaints or alleged crime done by a specific business enterprise should undergo the due process of law before certain actions could be done. The constitution guarantees this due process and recognized both property and contract rights as essential (Heilman 81). Corporations are treated as legal persons therefore; they are entitled with the same protection. In this process, it can be reflected that the government are restricted (to a specific degree) in dealing with any discrepancies happening in the business industry.

It is restricted in such a way that it can not nationalize or own the right of the business unless clear proofs have been laid. The property clause of the Fifth Amendment ensures business players the right to protest in cases wherein the state does unjust actions of owning a business property without assuring the business player with the right compensation (Bill of Rights). The right to acquire a property in private is given to business enterprises with the provision and accomplishments of the necessary papers required.

Upon turning the said property under the name of the business enterprise (stating the limit of area of authority), no actions by the government in acquiring the said entitlement of the property should be done unless proper negotiation between the owner and the government is conducted. This clause of the Fifth Amendment encourages business players to get hold of properties which they are more likely to use in business purposes. Such encouragement would in no doubt contribute to the growth in business sectors therefore improving the condition of the society as well.

Conclusion The role of business enterprises in the society is indeed significant. Through these business enterprises, development, production as well as supply of different commodities and services (which the consumers can not produce) had been made possible (Role of Business in the society 4). Needless to say that American citizen had highly depended on the services that businesses render. Employment for numerous people is also being provided upon the establishment of business enterprises.

The primary role of business in the country is to render services and goods to the consumer while it is the role of the government to make the goal of these businesses happen and set rules that is inclined to improve the economy of the country and the condition of the society as well. As an answer, the task of complete adherence to the law set by the government should be properly executed by these enterprises. ‘The founding fathers of the U. S. forged together a government built on a Constitution that assured individual liberty.

It is a small document that gives very specific powers to the federal government, leaving the rest of the powers to the fifty states of the Union and the people. ’ Amendments under the Bill of rights had substantially benefited the business sector in the society. Accompanying the law giving the permission for the enterprises to conduct their business is the protection of the rights and properties of such business establishments. The freedom being enjoyed by business enterprises is also associated with other civil and religious rights which the Americans values.

The bill of rights under the constitution assures fair trade in the business environment and also protects individuals from the threat of abuse of other individuals. The first and fifth amendments of the bill of rights brings forth opportunities for the business enterprises to establish their business without the fear of unjust treatment. The freedom in the execution of religion in the business industry opens possibilities for the minorities to take part. Minorities (in this case) refer to those people who are affiliated with different religion other than Christianity.

The personal and economic rights of these individuals are being respected by the government. The freedom of speech clause in the first amendment guarantees the business players the freedom in terms of presenting and selling their commodity. It is important for such players to have this freedom in order to competitively compete in the local as well as in the international trade or market. After all, the back pay for such freedom will not be solely reflected on the industry but to the condition of the country as well.

The clauses discuss in the Fifth Amendment assures enough privileges for businesses to be establish and continue. In this amendment, it can be vividly seen that the jurisdiction of the power of the government inferior as compared to its citizens. It is reflected that the government acts as a servant and not as a master, hence the power is still in the hands of the citizens. If the amendments would under the bill of rights where not put into law, it can be imagined that our society’s condition is not as prosperous as it is today.

Deprivation for the minorities to conduct business could cause detrimental effect to the states’ economy. If freedom of speech would be restricted, then the environment of the business industry would be monotonous. If the government would be assured of the right to take possession of any establishment then competitiveness among businesses would not progress. Business players would have less enthusiasm to venture into business and the society will in no doubt suffer. As it is mentioned in the speech of Heilman, ‘individuals shall be protected against the government as that he shall be protected by the government’ , it is through this belief that the diversity and success in business industry would be achieved.

Work Cited

1. “Bill of Rights. ” 30 May 2008 <http://score. rims. k12. ca. us/score_lessons/bill_of_rights/index. htm>.
2. Heilman, Dean Ralph E. “American Business and the Constitution. ” Vital Speeches of the Day 2 (1935): 80-84. “Key Findings and Statistics on Religion in America.
3. ” The Pew Forum on Religion & Public Life. 30 may 2008 <http://religions. pewforum. org/reports>. Longley, Robert. The Bill of Rights, Amendments I-X. About. com. 30 May 2008 <http://usgovinfo. about. com/blconbor. htm>. Price,
4. Kevin J. “Free enterprise”. Vital Speeches of the Day 57 (1991): 649-653. Rukeyser, Merryle S. “Advertising as a symbol of Freedom. ” Vital Speeches of the Day (1942) 497-500.
5. “The Role of Business in the Society. ” Wellington Rotary Club. 31 May 2008 <http://www. nzbr. org. nz/documents/speeches/speeches-92-93/role. pdf>.

Who is Hamer in Hamer v sidway?

Hamer is the side of a nephew who filed a lawsuit against his uncle in the amount of $ 5,000 for failure to fulfill the contract.

What rule of contract law did the court apply to the facts in Hamer v sidway?

       William E. Story, Sr. made a promise to his nephew William E. Story, 2nd that the former would pay the latter $5,000 if the nephew would cease from engaging to vices particularly on drinking, using tobacco, swearing, and playing cards or billiards for money until the said nephew’s 21st birthday, which the nephew agreed to fully perform.  Hamer acquired the right from the nephew through assignment and presented a claim of $5,000 to the executor of William E. Story, Sr. and for which said executor rejected on the ground of no binding contract due to the lack of consideration, hence an action was brought to court.

Issue:

        Is the act of refraining from engaging in vices a valid consideration?

Can a promise be consideration?

Consideration is usually either the result of: a promise to do something you’re not legally obligated to do, or. a promise not to do something you have the right to do (often, this means a promise not to file a lawsuit).

Decision:

       Yes, the act of refraining from engaging in vices a valid consideration.

Rationale:   Every person has the right to waive any legal right and in requested by another party, the same could constitute as a sufficient consideration for the promise by said requesting person. Since the nephew enjoyed the legal right to engage in vices like the use tobacco and drinking alcohol, his agreement to deny himself to enjoy such right for period of years to comply with the promise satisfies the requirement of consideration in enforceable contract.

What is consideration in a contract?

1) payment or money. 2) a vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. In a contract, one consideration (thing given) is exchanged for another consideration.

Reference: Hamer v. Sidway 124 N.Y. 538, 27 N.E. 256 (N.Y. 1891)

Being short means that the firms sell more shares than are available in the new issue and the rim has some fire power in the after-market, meaning more liquidity. Mr. Berry was earning millions of dollars for the bank in 2004, it was seeking outside legal opinions on the ramifications of renegotiating his contract to stop paying him so much. Cumming is willing to testify that senior executives at Scotia had divulged the bank’s desire to catch Berry in “something like a securities violation so Scotia could use it against him,” to either severely reduce his compensation package or fire him.

The bank claimed that Berry had hidden his behavior and that his education and training was such that e should have known his “misconduct breached fundamental terms of his employment with Scotia, and was just cause for his termination. ” Colon (berry’s lawyer) cited the passage in comic that exempts the distribution of any previously uninsured securities from being entered on the exchange. Williams responded by saying, “The advice we received from counsel” Scotia lawyer interrupted, preventing Williams from finishing her sentence, explaining that what she was about to say was protected by solicitor-client privilege.

But the fact that Williams, herself a lawyer, had sought a legal opinion on Berry’s reads begged a crucial question: if the head of compliance didn’t know whether or not what Berry was doing was improper, how could they expect him to understand? An industry that’s almost entirely self-regulated, Berry’s case raises questions about how this monitoring is carried out.

The History of Citibank and David Berry

The Bank of Nova Scotia, commonly referred to as Citibank, welcomed its first customers in Halifax, Nova Scotia in 1832. Citibank continued to expand its branches across Canada, into the U. S. ND overseas from the 1 9th century and onwards. In 1 999, Citibank’s Corporate Banking business and Scotia Capital Markets were integrated to form Scotia Capital. Citibank now serves to some 21 million customers in more than 55 countries across the world. One of the main factors for the growth and success of Citibank is that it fosters a committed team that lives their shared values and works together to provide customers with expert advice, insights and financial solutions . Citibank clearly puts great emphasis on hiring the best candidates suitable for their jobs. One individual who stood out the most was David Berry.

Berry first worked at Ernst & Young after finding out that the firm loud pay for his MBA tuition if he committed to work for them for a few years. He had left Ernst & Young after receiving his MBA and chartered accountant license to join Scotia Capital in 1995. Berry Was presented the opportunity to work at Citibank through his father’s friend, Gordon Cheeseburger, who was the chairman of Scotia Capital Markets at the time. Berry started out as a research associate and had later moved to the Sales and Trading department In the p of two years, he made his way up the ladder to eventually dominate Scotia Capital’s preferred desk.

Berry became a to commodity as other banks wanted him to leave Citibank and join them, which led to Citibank offering Berry a direct-driven deal in which he kept a certain percentage of the profits he made for the bank. He was the only trader who received a direct-drive deal as all the other traders were compensated on an annual bonus. This direct-drive deal percentage was increased a few times as Citibank aimed to keep Berry at the bank. In 2003, it was stated that he had earned $15 million for himself , earning almost double of the CEO of Citibank.

Through his performance he developed any privileges, and his domination of the industry made Berry extremely powerful. Shortly after his rise to success, he was dismissed from Citibank then known as Scotia Capital. What is the ethical case here? The ethical case here was that Citibank had fired Berry for supposedly engaging In inappropriate trading practices, specifically, selling newly issued preferred shares to clients without printing the trades biblically on the stock exchange. However, Berry claimed that it was perfectly fine to refrain from printing the trades on the stock exchange.  There were two issues involving Cecilia Williams that we’ve mixed up. Cecilia Williams questioned him about the trade regarding Balconied and Great West Life. She determined that he was wrong to do this and was going to forward the tapes to Mrs. But Berry had played the tapes to Scotia head of trading, Mark Evader, and he said that this was fine and that every trader (including him) did this. As Williams was getting ready to send the report to MRS., Berry was allowed to attach a narrative to the report explaining his actions. He told Williams that he was going to state that Evader said that what he did was common practice.

Williams reacted in shock and said “What? Our dead trader does this? ” After this, there was no talk of the tapes going to RSI. This had nothing to do with the preferred shares.  The second issue is in regards to the preferred shares and whether or not they should have been printed on the stock exchange. RSI did their routine trade audit of Scotia, and it was during this that they discovered the preferred shares issue. Celiac Williams wasn’t sure if there practices were allowed, and Berry suggested getting opinion from another compliance expert Linda Frets who stated that he had done nothing wrong etc etc. His is the main issue, and the reason he to fired for – not the Balconied and Great West Life trade. This had all started once Berry started to make millions for the firm and for himself, outpacing the earnings of top executives. Mr.. Berry had bought some shares in the Balconied mining company from a client and, in turn, sold the same client shares in Great West Life. Berry had not printed the trades on the exchange because the preferred shares were new issues (I. E. They were being offered to potential investors for the first time).

Berry justified his actions because it was understood in the firm that new issues were exempt from being printed on the exchanged. However, his actions were wrong in the eyes of Cecilia Williams, the head of Scotia Capital’s compliance department. Williams had discussed to Berry that she was going to send the tape communication between Berry and his client to the Market Regulation Services. The market regulation service had started its routine scheduled trade desk review at Citibank. Berry went on to get another opinion from his own counsel from a compliance expert, Linda Frets.

Frets ad advised that because the new issue shares in question had been sold from Berry’s inventory before being listed on an exchange, they did not constitute improper off-market transactions and thus were not in violation of Universal Market Integrity Rules (EMIR). Even if they had been, Berry did not understand why Citibank hadn’t alerted him to this issue long before now. He had never been secretive about how he operated. And, as far as Berry was concerned, there was no harm to his clients by trading this way. A few weeks later, Berry was asked to meet with Scotia Capital’s deputy chairman along with head Of institutional equities.

Berry was notified that he was being suspended for the time being because Citibank was undergoing its own investigation relating to the preferred shares issue. Mr. Berry filed a SSL 00 million claim focusing on constructive and wrongful dismissal. In return, Citibank filed a counterclaim along with a statement of defense. Ethical Issue in the Case and ethical behavior practices transgressed: One of the issues raised in the case is professionalism. The Commission found a violation and failure of the firm’s upper management to act in public interest in favor of their own. Mr. Berry was allowed to book trades which were entered on the liquidity of the preferred stocks. These trades made money for Scotia, and the more money he made for the bank the more capital he was allocated and the bigger the inventory he could carry and the more money he made as compensation. Even though this is not illegal, integrity of the capital markets was threatened by these actions. Also, the lack of supervision from the management has led to a conflict of interest. Their actions could have had serious and lasting effects on the integrity of capital markets and public trust resulting from a lack of supervision in Scotia Capital.

What is the Ethical Issue

The main issue in this case was whether printing the trades of the newly issued preferred shares on the stock exchange constituted unethical trading practices. Furthermore, if the practices were not deemed a violation of JIM by compliance expert Frets (and unsure by Scotia own Cecilia Williams), did Citibank act ethically in still pursuing their own investigation and terminating his contract? An identification of the key people involved, and their positions in the company Below is a list of the key people involved:

• Cecilia Williams (head of Scotia Capital’s compliance department)
• Linda Frets (External compliance expert)
• Jim Mountain (Mr.. Berry’s boss at Scotia Capital Brian Porter, Scotia Capital’s deputy chairman )
• Rick Hugh (Citibank CEO)
• Marc Mannequin (Berry’s assistant) David Wilson (then vice-chairman of the Bank of Nova Scotia, and chairman And CEO of Scotia Capital)
• Andrew Cumming, who, until 2002, was Berry’s direct supervisor. Cumming swore an affidavit in support of Berry’s lawsuit, claiming that he saw nothing wrong with how Berry was ticketing new issue shares. 9.
• Mark Evader, Scotia head of trading People who have suffered

David Berry suffered as he had been out of a job for a long time, and thus has offered financially and occupationally. Although he had received many job offers, they were all contingent on the outcome of the case. His reputation has been damaged as this stigma will always stick to him. Furthermore, his absence from the industry for a significant period of time may have damaged his efficiency as a trader as he would have lost many clients and relationships, as well as the power he previously possessed.

If he were to return to the industry, it would be near impossible to continue where he left off. In addition, David has further suffered financially as he has had to spend money n funding his case against Scotia. Citibank It is reported that the preferred desk has suffered without him since he was dismissed. Scotia has also had to spend a lot of money in the case against Berry. David Berry’s Clients David Beers clients have most likely suffered as well. If Berry, using his expertise was generating millions in income for himself, it’s clear that his clients were earning great profits on their investments as well.

Although his clients can find another advisor, it is not likely that they will find one with the expertise and skill of David Berry David Berry’s Family His family has also suffered because he has not worked ever since the termination from Citibank. This must have cost the family as their standard of living must’ve lowered with the great loss in income. They were living very lavish lifestyles with Berry’s income. He was alleged of committing security regulatory violations. He was accused of violating uniform market integrity rules. Berry went into a big legal battle to prove that he did not do anything wrong. Information was released to the media that higher management of Citibank were looking for opinions from alai. O,’errs to change Berry’s contract and keep him from leaving for a competitor prior to his accusation and termination from Scotia Capital. Eight years, later all allegations against Berry were dismissed by the IIRC. David Berry has a $100 million class action law suit against his former employer for constructive and wrongful dismissal. What should have happened to prevent improper action, and Resulting changes in corporate practices: We believe that the issue was in the company incompetence to provide adequate and effective supervision programs, and procedures for the employees to abide.

Lack of supervision from Jim Mountain, as a manager towards the employees, and poor corporate culture has resulted in a failure of employee’s ethics. A stricter procedural rules and more effective management control should have been imposed and fulfilled. No changes to laws or regulations were performed. The circumstances Of his dismissal for allegedly breaching trading rules and the regulator’s investigation of his conduct while working at Citibank. For good measure, the bank’s statement added: “Berry’s misconduct breached fundamental terms of his employment with Scotia and was just cause for termination.

He violated the trust and responsibility that accompanied his poss Zion had brought two sets of allegations against Mr.. Berry claiming that he violated uniform market integrity rules during the distribution of new securities. The panel noted that after obtaining commitments from clients to buy shares in a new issue, some of the sales went through syndication while others went through Mr. Berry’s inventory account. Because no commission was charged on all of these new-issue sales, some clients knew that the shares didn’t come from syndication. And what more the trade occurred when the expression of interest was made even though the trade confirmations didn’t show the usual new issue trailer. Everyone concerned understood that they were trading a new issue,” noted the panel, adding that prior to Mr. Berry being terminated “his employer had no written syndication process policies or procedures. “

In each of the two prior years to Mr. Berry’s dismissal, he had earned $15- million, when CEO Rick Hugh made an average of $8-million and few on the Street would dream of making as much. Mr. Berry, who is currently suing Citibank for constructive and wrongful dismissal Documents obtained by the Financial post suggest that, about six months before his termination under the cloud of the now-dismissed allegations, the ann. was seeking outside legal opinions on the ramifications of renegotiating his contract to stop paying him so much. The documents also said Mr. Berry could be fired “in the event of any of a regulatory breach, trading losses, or a violation of the bank’s code of conduct. However, things turned sour after Citibank created a new contract limiting compensation up to $1 0 million unless stated by management. Berry had not signed this new contract in April 2005. In May 2005, a regulatory precursor to the IIRC issued a warning letter to Mr. Berry. By the end of June 2005, Berry had been terminated with his group having chalked up about $43-million in net income. One year later Mr. Berry filed a $1 00-million claim alleging constructive and wrongful dismissal. In turn, the bank has filed a statement of defense and counterclaim. Was Citibank trying to save itself to the possible illegal trading activity conducted by Mr. Berry, or was it the top executives’ jealousy the main driver for Berry’s firing?

The process of labor-management bargaining has evolved since its beginning in the early years of labor negotiations. Since the parties involved in collective bargaining are negotiating a formal contract that both are to be bound by, there are many stresses and tensions that permeate the process. Most early negotiations were filled with drama and emotionalism.

The struggle has continued today to move toward a more rational process, whereby negotiations are conducted and settled on the facts and more concrete, quantitative arguments. In pursuit of this goal, there are strategies and tactics that can be utilized by both management and unionized labor in order to facilitate a more reasonable contract negotiation. The most beneficial tactics-setting reasonable goals, and researching facts-are employed before the negotiations even begin.

First of all, in order to bargain better, it is important to understand just what collective bargaining is. James P. Begin and Edwin F. Beal define collective bargaining as part of an Industrial Relations System. The system of relations consists of: (1) the people who head the organizations that provide goods and services to society, (2) the people who do the work, and (3) the governmental organizations that maintain the society. “Under capitalism, workers are relatively free to sell their own labor and withhold it at will (Begin, James P., Beal, Edwin F., 3).”

This forms a free-will contract in which the employer and employee must decide the terms of employment (Begin, Beal, 3). This provides the basis for the industrial relations system. Before judicial regulations were enacted as a framework for negotiations, the worker and the employer could enter into a verbal contract that would suffice. However, as workers organized themselves into formal labor organizations and elected members to represent them, more formal contracts were needed.

The movement of collective bargaining toward a matter of national policy began in 1935 with the enactment of the Wagner Act. This act pronounced two basic principles: (1) employees were to be permitted to form and maintain labor unions of their own choosing without being subjected to coercion, intimidation, or discrimination by employers; and (2) employers were to be required by law to bargain collectively with labor unions designated by their employees on wages, rates of pay, hours, and other conditions of employment.

The Wagner Act and others, like the Taft-Hartley Act and the Fair Labor Standards Act, have provided a framework of law within which the collective bargaining process must operate. The legal regulations extend to both the procedural aspects (the manner in which collective bargaining is to be conducted) and to the substantive aspects (the types of subject concerning which collective bargaining is obligatory and which may or may not lawfully be incorporated into collective bargaining agreements). However, the substantive aspect remains relatively unrestricted by law (Torff, Selwyn H., 4-14).

It is the substantive aspect that leaves collective bargaining negotiations subject to emotionalism, and illogical and irrational behavior. John Dunlop and James Healy have described four ways in which negotiations can be depicted. The first is a poker game, “with the larger pots going to those who combine deception, bluff, and luck, or the ability to come up with a strong hand.” The second is an “exercise in power politics, with the relative strengths of the parties being decisive.” The third, “a debating society, marked by both rhetoric and name calling.” Fourth and finally they noted a better way-if followed-that a negotiation can be depicted. This is a “‘rational process,’ with both sides remaining completely flexible and willing to be persuaded only when all the facts have been dispassionately presented (Sloane, Arthur A.; Witney, Fred; 203).”

Sloane and Witney have stated, “all of these characteristics have marked most negotiations over a period of time. The increasing maturity of collective bargaining implies enlargement of the rational process…” This rational process involves the employee, employer, and union settling on the basis of facts rather than name-calling, table pounding, and emotionalism (Sloane, Witney, 203-204).

Therefore, in order for collective bargaining to become more rational, certain techniques must be employed. Edward Peters has written a guide to better negotiating titled Strategy and Tactics in Labor Negotiations. In this book he provides good strategies for obtaining a more rational negotiation.

The first important step toward better bargaining is to realize the essential nature and purpose of negotiations. In a bargaining conflict, there are three main activities in which each party is involved: (1) attempt to influence each other, the employees, and public opinion by advocating the merits of their respective positions; (2) indicate strength to each other; and (3) explore the possibilities, in terms of each other’s maximum and minimum expectancies, of a settlement without an economic contest, or, at worst, a contest of minimum duration (Peters, Edward, 41). Peters states that sophisticated bargainers often underestimate the importance of good preparation and presentation of their position because they feel that these are just “window dressing for the harsh realities of economic strength (Peters, 42).” It is true that economic strength is important, but a position reinforced by logic and reason can often exert a crucial influence (Peters, 42).

Another step toward better negotiations is preparation and the setting of realistic goals. Peters states that “the practicality or impracticality of a collective bargaining goal is a matter of foresight, not something to be determined by hindsight (Peters, 60).” An example of this that pertains to management is that sometimes there are items that a union cannot and will not concede. If management does not prepare enough and makes the assumption that the union can and will negotiate on any proposal submitted by management, they risk the possibility of strikes. There are issues over which “a union will prefer to lose a plant in an economic contest rather than jeopardize itself with a larger group (Peters, 60).” The setting of more realistic goals by management could avoid this detrimental result.

In order to set realistic goals, a criteria for realistic goals must be established. Most negotiators, according to Peters, would agree that a realistic goal, to be attained without an economic contest, must be based on the following minimum considerations: (1) has the other party the ability to concede the issue? The employer must be able to concede the issue without serious damage to operations.

The union must be able to concede the issue without serious internal injury, or any danger of disintegrating as an organization, or losing out to a rival union; also without seriously impairing its external relationships in the labor movement, or with other employers; (2) are you warranted, by your strength, in setting such a goal? (3) Is your goal within the bargaining expectancy of the other party? This last point may be disregarded only if you are ready to wage an economic contest for your minimum goal (Peters, 61-62). These criteria should be fully examined before setting any goal or pressing any issue in a labor negotiation. Priorities must be established and ranked in order of impact and importance (Richardson, Reed C., 128).

Even though setting realistic goals help in negotiations, a course of action must be pursued in order to obtain those goals. Prestige plays an essential role in negotiations. Prestige is an intangible quality in the sense that it is a symbol-a symbol of the potential and actual strengths of the parties in all of their relationships. Prestige reflects itself in the relationship of the parties to each other and especially to the workers in the plant. A union’s basic strength lies in the support of its own membership (Peters, 85-86). Other factors that affect during negotiations are sign language, fringe issues, and negotiable factors.

However, the most important tactics take place before the actual negotiations. “Negotiators who approach the bargaining table without sufficient factual ammunition to handle the growing complexities of labor relations…operate at a distinct disadvantage (Sloane, Witney, 213).” Most larger unions and almost all major corporations today have their own research departments to gather data and conduct surveys. Only if both parties research and establish a framework for negotiations can they successfully obtain results within their range of acceptability. With this in mind, collective bargaining can mature to its desired rationality in the management-labor relationship.

This paper discusses the organizational structure of International Brotherhood of Teamsters which is designed and implemented by the top executives for proper implementation and standard functioning of its various unions that are established everywhere now-a-days. The effectiveness of organizational structure with respect to its union members is too determined with numerous offerings and servings which are facilitated to its union members. Teamsters Structure

The International Brotherhood of Teamsters is the world’s largest labor union as well as the United States diverse union with 1. 4 million members. It is almost difficult today to recognize a Teamster on streets due to its far and wide existence. Everyone is represented by Teamsters union from A to Z including zookeepers as well as airline pilots. Every union possesses one Teamster member out of ten other members (Teamsters, 2010). Local Unions The local unions of Teamsters are hundreds in number across the North America.

Their members and the local unions are the backbone and heart of the union. The Teamsters Union is organized differently from other labor unions and promotes strong local leaders and strong local unions. Most of the Teamsters contracts are negotiated by the locals and much of the services are provided to the members and thus, much of the dues money are kept by them. The locals preserve its particular experienced clerical staff, organizers, full-time business agents, certified public accountants and expert labor lawyers (US Special Interest Groups, 2010).

Each local union members design their own structure, opt own officers and vote for own bylaws which are most compatible in accordance with the Bylaws and International Constitution. The locals benefit from the assistance and expertise of various councils and conferences in the union’s structure. Apart from this, they also get professional support from the International Union while enjoying their independence (“Teamsters Union”). Joint Councils, Conferences and Trade Unions

The Joint Councils of Teamsters are organized in three or more local unions in different areas, the activities of which are coordinated by the Joint Councils accordingly. Some judicial and jurisdictional matters are also decided and solved by the Joint Councils. Teamster’s leaders, who share common problems and general interests throughout the country, are aided by the conferences and trade divisions. An informational clearinghouse is also provided to locals who bargain with same employer and negotiate in same industry.

Some general concerns and common problems are also discussed in conference meetings and regular trade division by local representatives (Teamsters, 2010). Execution of Unions The organizational and departmental structure of International Brotherhood of Teamsters’ and its unions are designed and executed by the General Secretary-Treasurer and General President who are serving as the union’s executive officers. Around 22 Vice Presidents, who are located at-large or geographically, are comprised in the General Executive Board.

At Convention, three trustees are elected to work as guard dogs across the international finances. The Constitution is amended and lending directions are measured and adopted by the locally elected Convention delegates who come to meet once in five years. The General Executive Board is the final governing body among Conventions who is guided by the Teamster Constitution. The officers are elected typically once in five years for the international union office for overall execution of Teamsters’ unions (“Teamsters Union”). CONCLUSION

Thus, the International Brotherhood of Teamsters is effective in serving the needs of its union members with regard to educational programs, training sessions, coordination of organizational activities, political actions and national contract negotiations, assistance from expert organizers, attorneys, researchers, negotiators as well as guidance from communications specialists, auditors and safety and health professionals (Teamsters Democratic Union, 2010). The effectiveness of aforesaid offerings and servings with respect to members unions are briefly determined below:

Educational Programs and Training Sessions: Union members are facilitated with various educational programs depending upon the needs and relevance of their duties and responsibilities for effective performance. Different training sessions are also held for upgrading the skills and adaptability of union members from time to time upon needs basis. Both the educational programs and training sessions are exclusively provided to union members as well as to Teamsters officers, stewards and business agents.

Support and Coordination: Union members get overall support for proper execution of union in accordance with the organizational needs and general concerns. The coordination is also provided for political action as well as national contract negotiations upon needs basis. Provision of Expert Professionals: Union members are encouraged for their dominant actions and their performance are enhanced through provision of expert organizers, researchers, negotiators and attorneys who furnish their worth knowledge, guidance and assistance.

More professional advices are too provided to union members through communications specialists, auditors and safety and health professionals. In short, the organizational structure of Internal Brotherhood of Teamsters is quite effective for its union members who provide various offerings and servings that help in the proper execution of union with respect to organizational needs and general concerns as may be required from time to time (Teamsters Democratic Union, 2010). References Teamsters (2010), Teamsters Structure, Retrieved on May 17, 2010 from http://www. teamster. org/content/teamsters-structure

“Teamsters Union”, Retrieved on May 17, 2010 from http://www. infoplease. com/ce6/bus/A0848030. html Teamsters Democratic Union (2010), How the Reform Movement has Changed the Teamsters Union (TDU History 1976-1979), Retrieved on May 17, 2010 from http://www. tdu. org/node/754 “Teamsters Union”, Retrieved on May 17, 2010 from http://www. opensecrets. org/orgs/summary. php? id=D000000066 US Special Interest Groups (2010), International Brotherhood of Teamsters (IBT: Teamsters), Retrieved on May 17, 2010 from http://usspecialinterestgroups. com/international-brotherhood-teamsters-ibt-teams