¶ … predatory business practices seen in today's business environment. It will also analyze whether the borrower or debtor ought to bear any responsibility, in such instances.
Specific Examples of Predatory Practices by Businesses
In 1993, Wal-Mart was accused of predatory pricing practices, in items like mouthwashes, toothpastes and nonprescription medicines, and tried by an Arkansas court; three independent drugstores filed a lawsuit that the largest retailer in the nation sold items below their cost for stealing rival stores' market share. The retail pharmacies situated in Conway asserted that the retail giant's Conway superstore caused their businesses to suffer (Multimedia, 2015). They claim that the retailer violated the Unfair Practices Act of the Arkansas Code, which prohibits selling of goods below cost to injure and destroy competitors. The complainants asked for 1.1 million dollars in damages. Wal-Mart did, at court, admit to selling certain goods at below- cost prices, but argued that this policy didn't injure its Conway competitors. The then- president and CEO of Wal-Mart, David Glass testified before the jury that the ideal situation would be making profits on every single item, but that isn't practically possible, which is why they did what they did.
In the year 2007, abuses linked with the American mortgage industry triggered a financial crisis, leading U.S. and EU regulators to review credit rating services. Asset- backed securities (ABS) bearing agency ratings facilitated...
And we must take into consideration what would happen if, somewhere down the line, we encountered the very real possibility of changed financial circumstances. The financial knots we're tying ourselves into now, as we scramble to purchase homes and wind up owning less of them, can have serious long-term ramifications. Because today's overall tighter finances often necessitate putting off major purchases, many adults don't buy their first home until they're
At some institutions, loans of this type were actually called "liar loans" by brokers, a reference to the obvious fudging of information they represented (Markels 2007). A substantial portion (if not a large majority) of new home purchases during that time period involved a fraudulent practice of dishonestly inflating the income and financial health of prospective purchasers. In many instances, the real estate brokers and mortgage brokers precipitated this type of
The housing market was already strong, but the elimination of practical reasons for validating lender information opened several doors very wide, each with an unpleasant surprise hidden behind it. First, because realtors earn their commissions based on sales and on the relative value of property, they have little incentive to disqualify bad risks of eventual mortgage default. Second, banks became equally unconcerned with the veracity and accuracy of the financial
Company audit occurs when there is need to examine the performance of a big company especially the financial and the accounting records over a given period of time. Professionals such as the certified public accountant always do the auditing. The audit of a company is significant in the verification of accuracy particularly in the accounting records. A company like coca cola will need an audit to help in verifying their
Strategic Financial Management Barriers to entry are situations that make it difficult for rivals to penetrate in market. These are the reasons, which inhibit the entry of business to an industry. Theoretically, if an industry is showing a rising trend of profits, it indicates that demand for it products are well and the goods can be sold at a cost generating profits. Thus there will be an inducement for firms to
, 93 F. 3d 1358 (CA7 1996) for its statement that "monopsony pricing is analytically the same as monopoly...pricing and is so treated by the law." Based on this determination that the two concepts are analytically similar, the Court thus concludes that therefore "similar legal standards should apply to claims of monopolization and to claims of monopsonization." Reasoning that predatory-pricing is fundamentally an act of monopolization and that predatory-bidding is
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