Varney operated one of two 5-ton cranes in a factory. Both cranes were to act simultaneously in lifting a 9- ton machine. The other operator was busy elsewhere, so Varney, who was in a hurry, tried to lift the machine with his crane alone. The cable broke after the load was 10 feet above the floor, and a worker who happened to be walking under the crane but who had nothing to do with the operation was injured. Has the worker

Varney operated one of two 5-ton cranes in a factory. Both cranes were to act simultaneously in lifting a 9- ton machine. The other operator was busy elsewhere, so Varney, who was in a hurry, tried to lift the machine with his crane alone. The cable broke after the load was 10 feet above the floor, and a worker who happened to be walking under the crane but who had nothing to do with the operation was injured. Has the worker

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter20: Management Of Employee Welfare

Section: Chapter Questions

Problem 8QAP

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Hunn injured herself when she slipped and fell on a loose plank while walking down some steps. The night before, while entering the hotel, she had noticed that the steps were dangerous, and although she knew from her earlier stays at the hotel that another exit was available, she chose that morning to leave via the dangerous steps. The hotel was aware of the hazard, as one of the other guests who had fallen that night had reported his accident to the desk clerk then on duty. Still, the hotel did not place cautionary signs on the steps to warn of the danger, and they were not roped off or otherwise excluded from use. Hunn brought an action against the hotel for injuries she sustained as a result of her fall. Should she recover? Explain.
A digital watch bought from TPPL had a short circuit while the customer was doing work under the sun. This resulted in minor burns and injury to the customer's wrist. The customer sued the company for $10,000 as compensation. As at 31 December 20X1, TPPL's lawyer believed that it would be more than likely that the company would lose the court case against the customer. As the short circuit was very likely due to a manufacturing defect, TPPL also made a corresponding claim against the manufacturer of the digital watch for $8,000. The company's lawyer believed that there would be a 70% chance that the counter claim against the manufacturer was likely to succeed. Explain and discuss how TPPL should treat these two legal claims in its financial statements for the year ended 31 December 20X1 under the applicable SFRSs.
Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $470,000. The company is contesting the fine. In addition, an employee is seeking $540,000 in damages related to the spill. Lastly, a homeowner has sued the company for $300,000. The homeowner lives 30 miles from the plant, but believes that the incident has reduced the home's resale value by $300,000. Ayers’ legal counsel believes that it is probable that the EPA fine will stand. In addition, counsel indicates that an out-of-court settlement of $230,000 has recently been reached with the employee. The final papers will be signed next week. Counsel believes that the homeowner's case is much weaker and will be decided in favor of Ayers. Other litigation related to the spill is possible, but the damage amounts are uncertain. a. Journalize the contingent liabilities associated with the hazardous materials…
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PowerSwitch, Inc. designs and manufactures switches used in telecommunications. Serious flooding throughout North Carolina affected Power Switch’s facilities. Inventory was completely ruined, and the company’s computer system, including all accounting records, was destroyed. Before the disaster recovery specialists clean the buildings, Stephen Plum, the company controller, is anxious to salvage whatever records he can to support an insurance claim for the destroyed inventory. He is standing in what is left of the accounting department with Paul Lopez, the cost accountant. “I didn’t know mud could smell so bad,” Paul says. “What should I be looking for?” “Don’t worry about beginning inventory numbers,” responds Stephen, “we’ll get them from last year’s annual report. We need first-quarter cost data.” “I was working on the first-quarter results just before the storm hit,” Paul says. “Look, my report is still in my desk drawer. All I can make out is that for the first quarter, material…
Murray reported to the Environmental Protection Agency that his employer was illegally dumping chemicals into a river. His charges were true, and Murray's employer was fined. In retaliation, Murray's employer fired him and made deliberate efforts to prevent Murray from obtaining other employment. Murray sued the employer, claiming that his reputation had been damaged. Murray won his lawsuit and received an award for "damages to his personal and professional reputa- tion and for his mental suffering." Now he would like to know whether the award is taxable. He argues that he was awarded damages as a recovery of his human capital and that a recovery of capital is not income. Is Murray's logic comrect?
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An accident solely attributable to the criminal negligence of the driver of Reckless Bus Company resulted in the death of Ricardo's wife, physical injury to Ricardo that prevented him from working for a month and the total wreck of his brand new car which he bought for P400,000. In the action for damages filed by Ricardo against the Bus Company, the Court awarded the following: For Ricardo's injury consisting mainly in the loss of his right arm P30,000 For the loss of one month salary 25,000 For the death of his wife 25,000 For moral damages on account of such loss 100,000 For the loss of his car the value of which doubled because of inflation 800,000 1. How much was the taxable income of Ricardo?"
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