Tag: Laws

Duty of Care Law English and Irish Approaches 2000 Essay
Duty of Care Law difference between English and Irish Approaches 2000 words Essay; The duty of care arises in the tort of negligence, a relatively recently emerged tort. The general principle is that you should not harm those people to whom you owe a duty of care law by your acts of omission. If you fail in the standard of care owed; you will be liable for your acts or omissions due to negligence.

Here is the article to explain, the difference between English and Irish Approaches in Duty of Care Law 2000 words Essay!

The questions arise as to who duty owed and more significantly as to the standard to the duty owed. In Ireland, a duty is generally owed to any person who can class as your neighbor; which involves issues of proximity, foreseeability, and policy considerations. Differences exist in Irish and English law in terms of who owed a duty of care. As regards the standard that owes, it is that of the “reasonable person”. The cornerstone of the duty of care principle existed expanded based on the “neighbor principle” by Lord Atkins in Donoghue v Stevenson. [1932] AC 562.

The case involved a woman who had suffered shock and gastroenteritis upon the consumption of a bottle of ginger ale. The shock and gastroenteritis resulted from a decomposed snail at the bottom of the bottle. The plaintiff had no action against the shop owner, as he had not been negligent in any way. The question was whether she could take an action against the manufacturer of the ginger ale. The court rules in her favor, finding that a duty of care existed owed to your ‘neighbor’. Lord Atkins stated that:

“The rule that you are to love your becomes in law you must not injure your neighbor and the lawyer’s question who is my neighbor? receives a restricted reply. You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be liable to injure your neighbor. Who then in law, is my neighbor? The answer seems to be persons who are so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to acts or omission which call into question.”

The English Approach;

This duty of care law mentioned above was later endorsed in Anns v Merton London District Council [1978] AC 728. The facts of this case were the plaintiffs were leasees of flats in Wimbledon. The borough of Merton approved a set of plans to build a block of flats. Eight years after the building was complete and the flats stood rented the foundation started to deteriorate. The tenants brought an action against the city for the cost of the repairs. The plaintiffs sued the local authority because their predecessor’s inspectors had either not inspected the foundations or, if they had, had done so negligently. The House of Lords held that the local authority owed the plaintiff a duty of care.

It was in this case that lord Wilberforce established a two-stage test:
- First one has to ask, as between the alleged wrongdoer and the person who has suffered damage; there is a sufficient relationship of proximity or neighborhood such that, in the reasonable contemplation of the former; carelessness on his part may be likely to cause damage to the latter- in which case a prima facie duty of care rises.
- Secondly, if the first question answer affirmatively, it is necessary to consider whether there are any considerations; which ought to be negative or to reduce or limit the scope of the duty or the class of person to whom; it owed or the damages to which a breach of it may give rise.
More Approach;

In subsequent cases in England, this ruling was initially approved, but rejected in Murphy v Brentwood District Council [1991] 1 AC 398, as it lacked precision and created a duty of care of general application. In this case, the defendant Brentwood District Council failed to inspect the foundations of a building adequately; with the result that the building became dangerously unstable. The claimant, being unable to raise the money for repairs, had to sell that house at a considerable loss; which he sought to recover from the district council.

The plaintiff’s actions failed and it stood held that the defendants did not owe a duty of care to the purchasers. As a result, in England, the law has developed certain categories of negligence, as suggested by Lord Bridge in Caparo Industries Plc v Dickman [1990] AC 605 where he stated the law should be allowed to develop on an incremental basis rather than along the broad lines it had been followed since Anns.

Lord Bridge referred favorably to the Australian High Court decision of Sutherland Shire Council v Heyman where Brennan J had suggested that:

“it is preferably in my view that the law should develop novel categories of negligence incrementally by analogy with established categories; rather than a massive extension of a prima facie duty of care restrained only by indefinable considerations; which ought to negative or to reduce or limit the scope of the duty and the class of person to whom it should owed”.

Ultimately the court in rejecting the earlier tests laid down; their three-step test required foreseeability, proximity, and the imposition of a duty that would be “just and reasonable”. This third criterion would essentially allow the courts to restrict the unfettered expansion of the duty of care to new situations.

The Irish Approach;

Until recently, the approach of both the Donoghue and Anns stood accepted by the Irish Courts; whose approach involved an examination of the issues of proximity and foreseeability; and any policy considerations that would limit negate the scope and the duty of care law. In Ward v McMaster, Louth Co. Council and Nicholas Hardy & Co. Ltd. [1985] IR 29, it stood held at the duty of care arose from the proximity of the parties; and the foreseeability of the damage, balance against “ absence of any compelling exemption based on public policy”.

However, recent decisions of the Supreme Court discussed below, indicate a retreat from; this approach and adoption of the English approach. In the abovementioned Ward case, the plaintiff had purchased a house with the aid of a local authority housing grant. He later learned that the house was severely substandard and structurally unsound. He subsequently brought an action against the builder, the local authority, and the value of the local authority.

The local authority existed required by law to value the house before issuing the housing grant. They did so and their valuer found no defects. However, the valuer did not have any construction knowledge and existed therefore not held liable. He was an auctioneer and had never put himself forward as competent to value the house. The local authority, however, existed found to be negligent; as it had failed to engage a person competent to carry out the investigation. The local authority maintained that it failed in duty, not to the plaintiffs; but, to the public whose rates and taxes went into funding the local authority.

More Approach Part 01;

The court rejected this holding that there was proximity between the parties. It held that it was foreseeable that the plaintiff would rely on the local authority’s valuation. The fact that the plaintiff had applied for a housing grant was proof that he was not wealthy; and, would therefore have been unlikely to carry out a separate valuation in particular; the court heard that the failure of the local authority to warn the plaintiff not to rely on its valuation was relevant in finding it liable.

The builder existed also found to be reliable on the law since including Donohue v Stevenson. The Supreme Court ruled that the duty owed would be to avoid foreseeable harm; and also to avoid any financial harm that might arise from having to repair defects in the house. This ruling changed the common law position that a builder could not be liable in such a case. McCarthy J stated that the duty arose “from the proximity of the parties, the foreseeable of the damage and the absence of the compelling reason bases upon public policy”.

More Approach Part 02;

In McNamara v ESB [1975] IR 1, a young boy sustained when he broke into an ESB substation. The substation stood surrounded by a fence which stood being replaced by a wall. The accident occurred at a spot where there was wire meshing. There stood easily reachable un-insulated conductors at the ESB station and for this reason; the ESB had placed barb wire above the mesh fencing to prevent intruders from entering the site. The ESB also knew at the time that children were entering the substation.

The temporary fence stood severely criticized both by an architect and an engineer hired as experts by the plaintiff. The court found the ESB liable based on proximity and foreseeability. Also, The court did consider the steps taken by the ESB to prevent entry and decided that there were unreasonable circumstances. The court considered whether the children could also be liable. It concluded that they were not, as they did not appreciate that; there was a danger and this danger had not been communicated to them.

More Approach Part 03;

The recent Supreme Court judgment of Glencar Exploration plc and Andaman Resources plc v Mayo County Council [2002] 1 I.R. 84 demonstrates a retreat from the traditional stance of the Irish courts, bringing Irish law into line with English law. This judgment stood followed in Fletcher v Commissioners of Public Works in Ireland, Supreme Court, unreported, 21 February 2003. The plaintiffs in the Glencar case had been granted ten licenses by the Minister for Energy to explore for gold in the Westport area and had invested heavily in such mining over 24 years between 1968 and 1992.

In 1991, they set up a joint venture with an Australian company, Newcrest Mining Limited. However, this joint venture collapsed following the introduction of a mining ban by Mayo County Council according to its 1992 draft county plan. The plaintiffs successfully challenged the mining ban in a judicial review proceeding in the High Court. They subsequently sought to recover damages from Mayo County Council for breach of duty in an action before the High Court, which dismissed the claim. The reason behind the dismissal was that although Mayo County Council had been negligent in adopting the mining ban, according to Kelly J, this negligence did not give rise to any right to damages.

More Approach Part 04;

The High Court decision stood appealed to the Supreme Court, which again dismissed the action. Keane CJ dealt with the duty of care and the neighbor principle at length. He questioned whether the two-step test of Anns was the correct test to follow in this jurisdiction and reinterpreted the decision of the Ward case. He stated that:

“There is, in my view, no reason why courts determining whether a duty of care arises should consider themselves obliged to hold that it does in every case where injury or damage to property was reasonably foreseeable; and the notoriously difficult and elusive test of ‘proximity’ or ‘neighborhood’ can said to have been met unless very powerful public policy considerations dictate otherwise. It seems to me that no injustice will be done if they require to take the further step of considering whether, in all the circumstances; it is just and reasonable that the law should impose a duty of a given scope on the defendant for the benefit of the plaintiff … ”

The Glencar judgment involves an additional third step to the Anns’ two-step test. The question must ask as to whether it is just and reasonable to impose a duty of care. Arguably, this may be no different than the policy considerations inherent in the two-step test. However, it adds the third hurdle for litigants to overcome. The Glencar judgment is in line with the approach favored by the English courts.

Duty of Care Law difference between English and Irish Approaches 2000 words Essay; Image by LEANDRO AGUILAR from Pixabay.

References; The duty of care. Retrieved from https://www.lawteacher.net/free-law-essays/tort-law/the-duty-of-care.php?vref=1
January 22, 2022
The Data Protection Act 1998 Examples Summary Essay

Examples and Summary of the Data Protection Act 1998 Essay; DPA 1998 is the main piece of regulation that governs the protection of private information in the UK. It applies to statistics hung on each computer and paper so long as, inside the latter case, the facts stand held in an applicable guide submitting gadget. The DPA gives any individual the right to know what data an agency holds approximately him/her and sets out regulations to make sure that this record treats well. The Act regulates by the Information Commissioner’s Office (ICO).

Here is the article to explain, The Data Protection Act 1998 Examples, Summary, and Essay!

The Data Protection Act offers people the proper access to facts approximately themselves that’s held through a business enterprise and sets out how personal information has to accumulate, stored, and process. It isn’t strictly approximately publishing but cover here for completeness as it governs getting entry to facts, albeit personal records. It ought to take into consideration whilst records post as it limits what private records may make public too had and the facts which may launch below FOIA. Data protection law best applies to residing individuals which is why getting admission census statistics authorized after a hundred years or slightly earlier as has been the case with the 1911 Census in England.

The Data Protection Act 1988 Examples and Summary, creates a series of rights for people about data held about them, and also a mechanism (the Information Commissioner) to enforce those rights. It sets out a series of data protection principles that have now stood the test of time.

The eight data protection principles set out in schedule 1 of the Act.

These eight principles are that personal data should process fairly and lawfully (principle 1); that data must obtain and process for a specified and lawful purpose (principle 2); it must be adequate, relevant, and not excessive (principle 3); also it must be accurate and kept up to data (principle 4); it must keep no longer than necessary (principle 5); the rights of data subjects must respect (principle 6); it must appropriately protect (principle 7); and, it must not transfer outside the EU unless it is to a country that also requires data to protect (principle 8).

Schedule;

Data under the Act give a wide definition and includes not only electronic data but; where it exists held by a government department, includes any data that they held. Personal data, which the Act primarily relates to, is a subset of this and includes data linked to an individual. It is this data that is the subject of the data protection act 1998 examples and summary principles.

When personal data process several conditions apply, which make out in schedule 2 to the Act. The first condition is that the data subject (the person the data is about) must consent. The second condition is that the processing is necessary. The schedule provides several different ways in which the processing may be necessary. The most common one is that it is necessary for the legitimate interest of the data controller.

If the data is sensitive personal data then further rules apply which exist set out in schedule 3. Sensitive personal data is related to a person’s race, politics, religion, union activities, physical or mental health, sexual activity, or criminal offending. Schedule 3 requires that if any of these apply then there must be explicit consent from the data subject. It also has a much more limited set of criteria that can satisfy the necessity test; they must ensure that the rights and interests of the data subject exist protected, and there are restrictions on the disclosure of the information.

Summary;

Although the rules summarised above are the general principles there are several exceptions to these. These exist to set out in part 1V of the Act. There are exceptions (of varying degrees) in the interests of national security, crime, health, journalism, research, and parliamentary privilege (amongst others). For national security and law and orders matters, the exemption is absolute, but for others such as journalism, the exemption is much more limited and requires the journalist to satisfied that there is a public interest in the publication.

A key way that the Act goes about ensuring compliance with the principles is by giving individuals the right to access data that exists held about them. This right finds in section 7 of the Act. Any person may submit a written request to any data handlers, and once they do they exist entitled to be told what data exists held about them and how it stands being processed.

Data controller;

The data controller exists entitled to charge a fee for providing this information (subject to a maximum amount allowed by parliament) and they do not have to provide the information where to do so would be to breach some other person’s privacy. The basic principle however is that a person should have the right to know exactly what information exists held about them. Further, the Act also gives a person the power to insist that their data do not process if to do so would cause them unjustified distress. The ultimate method of ensuring compliance with the data protection principles rests with the Information Commissioner.

The role lived originally entitled the Data Protection Commissioner; but, it existed renamed in 2010 to ensure a more accurate description of the role. The Commissioner employs a staff of advisors, lawyers, and enforcement officers and produces regular compliance reports. They have several powers that they can use to enforce compliance. These include serving information notices requiring the provision of information, imposing undertakings on organizations to compel them to amend offending behavior, serving enforcement or stop notices, imposing fines, or bringing criminal prosecutions.

The Computer Misuse Act 1990;

The Computer Misuse Act 1990 shows the difficulties that any legislature has in providing a comprehensive set of rules for a technology that is developing at pace. When the Act stood passed personal computers were calculating machines, and most homes did not have one. They bore very little resemblance to the machines which are commonplace today. Nevertheless, because of problems with the existing law, it lived felt that a comprehensive computer misuse Act existed required.

Limitations;

The limitations of the existing law were already being felt in fraud offenses. Under the Theft Act 1968 and 1978, a fraud had to deceive a person; and where processes existed being carried out entirely by computer then a lacuna developed. (Under the Fraud Act 2006 this is no longer an issue as it is the intention of the actor rather than the impact on the victim which is determinative of a crime).

The Computer Misuse Act 1990 has its genesis in a working paper published by the Law Commission in 1988. This was primarily concerned with the offense of hacking, although that particular phrase was not in use at that time. The question that the Law Commission posed was whether the behavior that would not otherwise be an offense should become an offense simply if it existed done using a computer. For instance, in other areas of life, the gaining of confidential information or industrial espionage would not treat as criminal offenses. The question that the Law Commission had posed was whether or not a special case could make out for computers. They concluded that it could, and this formed the basis of their proposed legislation.

Proposals;

The Law Commission publish their proposals in 1989, and their general approach lived extremely well received. However, they were extensively lobbied by groups on behalf of banking and commerce, and by computer and software manufacturers. As a result, they also proposed two further offenses which existed also included in the 1990 Act. These have proved much more problematic. Unfortunately, the technology advanced at a rate of notes and left the legislation well behind.

There have been various attempts to amend the sections but they have been of only limited success. For instance, denial of service attacks are not easily caught within the computer misuse act; and yet these are some of the most common forms of computer misuse that now exist. The problem is that the World Wide Web had not yet been invented at the time that the Act stood passed; and, no one appreciated the life-changing impact that this would have for all communities.

It should note that the Act does not at any stage attempt to define a computer. This is undoubtedly a very sensible approach as any definition would very rapidly risk being overtaken by fast-moving technological developments.

Section 01;

Section 1 of the Act seeks to make hacking an offense. This makes it illegal for anyone to operate a computer with intent to secure access to the data on it; and where he knows that he does not permit to have access. Since the Act existed passed the trend has continued for more and more material to store on computers, and yet such attacks continue.

The Act does not require that the defendant has any particular motive in hacking into a computer. The men’s rea is simply that they knew that their entry stood unauthorized and that they were intending to gain access. This can justified because of the expense that the owner of the system might exist put into protecting their system. It is worth noting that accessing equipment recklessly would not amount to an offense. An offense under this section carries a maximum of two years imprisonment.

Section 02;

Section 2 of the Act creates an aggravated version of the basic offense; where the unlawful access was to carry out any further offense; which can carry a maximum prison sentence of five years or more. That further offense does not need to carry out using a computer.

Section 03;

Section 3 of the Act, as it now stands, creates an offense of carrying out an unauthorized act with intent to impair the operation of a computer. There is an alternative offense under the same section of carrying out the act recklessly. This section stood developed as criminal damage only really applies to physical damage, and electronic destruction or obstruction would not cover by that. Section 3ZA, which stood inserted by the Serious Crime Act 2015; creates an aggravated version of the offense where there is a risk of serious damage.

Finally, terms of offenses under the Act s3A, which stood inserted in 2006; make it an offense to make, supply, or obtain items to use in committing the other offenses under the Act.

The Data Protection Act 1998 Examples Summary Essay; Image by LEANDRO AGUILAR from Pixabay.

References; The Data Protection Act 1998. Retrieved from https://www.lawteacher.net/acts/data-protection-act-1998.php?vref=1

January 13, 2022
Sale of Goods Act 1979 Sections 12 13 14 15 Essay

Sale of Goods Act 1979, under Sections 12, 13, 14, 15 Essay, Summary, and History. What is the Sale of Goods Act? This act calls for goods to be as defined, of exceptional nice, and match for the cause. Fit for motive approach each for their normal reason, and additionally, any particular purpose which you agreed with the vendor (as an example, in case you especially asked for a printer that might like-mind along with your computer or wall tiles that might be appropriate to use in a restroom).

Here is the article to explain, Essay, Summary, and History of Sale of Goods Act 1979, under Sections 12, 13, 14, and 15!

Goods sold must additionally healthy any pattern you provided in-store or any description in a brochure. The best time goods don’t require to be quality high-quality is if an illness or difficulty becomes especially drawn for your interest earlier than you purchased them. So, in case you tested the goods and could observe (however did not do so) that they have been no longer of first-class quality. Or, in the case of sale by sample, if the lack of excellent would have been obvious on an inexpensive examination of the sample, you would no longer be capable of arguing that the goods have been not of excellent pleasant.

Introduction;

This summary examines the Sale of Goods Act 1979 (“the Act”) within its context: why it existed and drafted. What are its important provisions, and how it has changed since it came into force? More to know Antitrust Law Case Study. It submitted that the Sale of Goods Act 1979 has been part of a change in consumer dealings, with its most significant contributions being to the rights consumers have when they buy products that turn out to be faulty. Indeed, its use has been so central to implied terms in particular, that one author criticized for failing to see the contribution of the Act to the law of implied terms. At the same time, the Act’s importance has to an extent been diminished by the introduction of very recent legislation.

The rationale for Drafting;

The Act codified various provisions, such as the formation of a contract. Which was already prevalent and well-established in the common law. However, its contribution was to enhance consumer confidence. It argued that without the Act, and its successors, there would be little protection for consumers. This imbalance of consumer rights would lead to significant caution and even “defensive consumerism”.

If consumers believe they have few rights when purchasing goods, then they are slow to trust newer and less-familiar brands and will continue to buy goods from established brands, even where those goods lack quality. Therefore, if the legislature does not guarantee certain minimums for consumer confidence, competition would suffer. In summary, the Act stood brought about due to a concern for protecting consumer rights. Thereby promoting consumer confidence and increasing competition amongst producers.

Provisions of Note;

The Act was recognized for its contribution to the law of implied terms. Sections 12, 13, 14, and 15 guide the existence and scope of implied terms relating to title, quality, sale by description, and sale by sample. It submitted these sections are central to any considerations about implied terms.

Section 14;

It is important because of its use of several concepts. First, it implies several terms in all contracts, those terms being that the goods are of satisfactory quality. Which is evaluated by reference to the “state and condition” of the goods? Second, the section contains an important proviso: the terms only imply when the sale conducts “in the course of a business.” The “valuable decision” of MacDonald v Pollock – a Scottish case which nevertheless provides important guidance for applying the Act across the UK – has recognized this section to have far-reaching consequences for business-to-consumer and business-to-business transactions, because the definition of a business is now a material issue.

Section 15A;

It refers to remedies for breach of conditions in non-consumer cases. This section says a buyer may claim for breach of warranty, but not repudiate a contract, where “the breach is so slight it would be unreasonable for [the buyer] to reject [the goods].” This section has been argued as “central to elements of commercial practice” – as in one case – to concepts of description, condition, and rejection.

The Act makes other specific additions to contract law designed to protect specific consumers. Section 3 of the Act gives detail about “necessaries” purchased by a minor. According to that section, necessaries – defined as “goods suitable to the condition in life of the minor and to his actual requirements at the time of sale and delivery” – must sell/purchase at a “reasonable” price. That section also requires a reasonable price must pay by a person who “because of drunkenness is incompetent to contract.”

In conclusion, it submitted that the Act has codified the law, and provided guidance on various miscellaneous issues. And has been most significant for its contributions to consumer protection and commercial practice through implied terms.

Redefined and Repealed;

First, the Act and its place in consumer dealings stood further expanded on by subsequent legislation, in particular the Unfair Terms in Consumer Contracts Regulations 1999. These Regulations have added “to the consternation of UK lawyers”, the requirement by businesses to show good faith. This is a form of dealing which often seen in Continental European jurisdictions. But much less often in English law, which has “freedom of contract” as its object. Due to it not being part of English jurisprudence, the concept of good faith “remains early”. Nevertheless, these legislative developments have been accommodated, if only to some extent. Because of the detail given by the Act to implied terms.

Scope;

The Act has also been recently subjected to a reduction in its scope. The Consumer Rights Act 2015 (“the 2015 Act”). Which came into force in October 2015, and repealed a significant portion of the Act. The Act formerly had provisions relating to unfair terms of the contract in dealings vis-à-vis consumers and businesses. All of those provisions have now been repealed and replaced by the 2015 Act. Importantly, the 2015 Act has enshrined consumer protections relating to digital content.

On the one hand, these changes are significant: the 2015 Act has introduced these protections. Because of issues relating to digital content, such as methods of delivery to smartphones. And the purchase of apps lived not envisaged at the time of the Sale of Goods Act. To a degree, therefore, the 1979 Act retains stood superseded. However, the Act still provides important concepts: the 2015 Act has principles of quality. And fitness for purpose is very similar to the 1979 Act. Therefore, the Act continues to be relevant.

Conclusion;

It submitted the Act has been part of and has helped to develop consumer protection. It has been part of an effort to boost competition by giving consumers certain assurances about their rights when purchasing from businesses (hence why the definition of a “business” is such an important issue). To an extent, subsequent developments have introduced concepts to consumer-to-business dealings that existed not envisaged in the Act. Nevertheless, it submitted these developments were only possible, at least in part, due to the foundations of the Act and its provisions relating to implied terms.

Sale of Goods Act 1979 Sections 12 13 14 15 Essay; Photo by Pixabay from Pexels.

References; Sale of Goods Act 1979. Retrieved from https://www.lawteacher.net/acts/sale-of-goods-act-1979.php?vref=1

January 11, 2022
8 Case Study of Antitrust Law US Essay
Antitrust Law US Essay 8 Case Study; Any regulation restricting enterprise practices considered unfair or monopolistic. The United States has the longest-standing policy of keeping opposition among business establishments via a spread of legal guidelines. The quality recognized is the Sherman Antitrust Act of 1890, which declared unlawful “every agreement, aggregate . . . Or conspiracy in restraint of exchange or trade.” Another important US Antitrust law regulation, the Clayton Antitrust Act of 1914, as amended in 1936 via the Robinson–Patman Act, prohibits discrimination amongst clients via costs or other ways; it also prohibits mergers of companies, or acquisitions of 1 firm using every other, on every occasion the effect can be “to substantially reduce competition”.

Here is the article to explain, 8 Case Study of Antitrust Law US Essay!

Many international locations have vast laws that defend purchasers and also alter how agencies function their agencies. The purpose of those legal guidelines is to offer an equal gambling subject for comparable corporations that function in a specific enterprise while stopping them from gaining an excessive amount of energy over their competition. Simply placed, they forestall businesses from gambling grimy to make an income. Also, These are called antitrust laws.

What is Antitrust?

Antitrust laws are policies that inspire opposition with the aid of restricting the market electricity of any precise company. This frequently includes ensuring that mergers and acquisitions do not overly listen to marketplace power or form monopolies, in addition to breaking apart corporations that have become monopolies.

Antitrust laws also prevent more than one corporation from colluding or forming a cartel to limit opposition thru practices that includes price-fixing. Due to the complexity of figuring out what practices will limit opposition, antitrust regulation has ended up a distinct prison specialization.

What are Antitrust Laws?

Antitrust legal guidelines additionally known as competition laws are statutes evolved through the U.S. Authorities to shield consumers from predatory business practices. They ensure that honest opposition exists in an open-market financial system. These laws have advanced in conjunction with the market, vigilantly guarding in opposition to might-be monopolies and disruptions to the productive ebb and waft of opposition. Antitrust laws are implemented to an extensive variety of questionable business sports; along with but are now not constrained to marketplace allocation, bid-rigging, rate-fixing, and monopolies.

Below, we take a look at the activities those legal guidelines guard against. If antitrust law didn’t exist, purchasers might no longer benefit from different alternatives or competition within the US market. Furthermore, customers could be pressured to pay higher charges and could have gotten entry to a confined supply of products and services.

6 Main factors of US antitrust law;
- Antitrust laws are statutes evolved by using governments to guard purchasers against predatory business practices and ensure fair opposition.
- Antitrust laws are implemented to a wide variety of questionable commercial enterprise activities along with market allocation, bid-rigging, price-fixing, and monopolies.
- Core U.S. Antitrust law become created with the aid of three portions of legislation: the Sherman Anti-Trust Act of 1890, the Federal Trade Commission Act, and the Clayton Antitrust Act.
- Antitrust legal guidelines had been designed to defend and also promote opposition within all sectors of the economic system.
- The Sherman Act, the Federal Trade Commission Act, and the Clayton Act are the three pivotal laws in the records of antitrust law.
- Today, the Federal Trade Commission, from time to time at the side of the Department of Justice, is tasked with imposing federal antitrust legal guidelines.
Case 1: Write a 100- word abstract of the case, including the date of the case.

The essay gives a brief analysis and review of a case in which the government of the United States led to the U.S. Supreme Court. This is the defense of the claim appeal 384 U.S. competition 270 presented by the U.S. government against VON Grocery Co. (Von) in 1966 in the District Court of the United States for the Southern District of California No. 303. The duration was March 22, 1966, and the delivery of a verdict was May 31, 1966. It was in favor of the defendant.

This just reminded demand, government regulators were ignoring situations that occur within its jurisdiction. It was despite his knowledge of the changing developments in market structures that controlled processes. Government regulators failed to switch to a relaxed mood compared to previous legislative procedures necessary reacted to the threats and opportunities of his time. As a result, this led to the prevention of unfair trade practices or disposal of similar economic activities of small-scale businesses.

Case 2: Describe the provision of the US Antitrust Law invoked to judge the presence of anti-competitive behavior or potential for moving the industry in that direction.

The 1960 merger of Von Grocery Company with competitor Shopping Bag Food Stores (Shopping Bag) whose locations are in Los Angeles, California violated Section 7 of the Clayton Act (n. P Thomson Reuter). Its amendment in 1950 regulates the reasonable termination through the prohibition of mergers and acquisitions, which decreased competition. Even after a new amendment in 1980, remains the main reference point for antitrust law mergers that threatened the US United States (Fox & Fox).

Case 3: Describe the basis for the ruling and action that pertains to all OR some of the following factors: The extent and trend in competition and expected in the future: Industry Structure and trend and projection for the future [based on the past, mostly]; CR4, CR8, and HHI, especially in cases of mergers.

The claim of the United States had other modifications as support for their arguments. They were the 1950 amendment to Section 7 of the Celler-Kefauver and Congress sought to preserve competition for small businesses. Stood also intended to help companies focus. Also, The court was the agent that was against large companies that use concentrations in markets with increasing centralization of business. He succeeded in divesting after United States v. Philadelphia National. . Bank, 374 U.S. 321 Celler-Kefauver 362 Anti-Merger Act 1950 as amended provides relevant information:

“That no company engaged in commerce … shall acquire all or part of the assets of another company also engaged in commerce, wherein any line of commerce in any part of the country, the effect of such acquisition may be substantially to lessen competition or tend to create a monopoly. “

Case 4: Describe the “conduct” in question that has been considered “anti-competitive:” Determine if the defendant had used an anticompetitive Price Strategy and explain how. Likewise, describe any Non-price Strategies the defendant had used and describe how.

In investing 233 F. Supp. 976 Richard A. Posner was counsel for the United States. Your tips helped were Attorney General Marshall, Assistant Attorney General Turner, Robert B. Hummel, James J. Coyle, and John F. Hughes. The defense attorney was William W. Alsup. Your tips help Warren M. Christopher and were William W. Vaughn. As an interested party, the National Association of Retail Grocers of the United States Attorney Bison was Henry J., Jr., as amicus curiae, urging affirmance.

MR. JUSTICE BLACK was the judge in the case and give judgment. The date of the original application was March 25, 1960. March 28, 1960, the District Court did not grant the motion of the Government for a restraining order against Von Grocery Company. Also, The latter wanted to acquire tangible capital around the Shopping Bag Food Stores, and the ruling was that not violate the terms of demand.

It was a backdoor way of recognizing the merger and showing favoritism to the accused before final judgment. The main argument of the defense was that a company was protecting the other from the state of collapse. They merged to protect a stronger competitor. 374 U.S. 321, 362 was the claim that prohibiting such mergers. There were bank loans that may have had access to and filing for bankruptcy as financial coverage. The company achieved this when it was about to collapse. Also, He managed to regroup with the help of government agencies and private financial consultants.

Case 5: Describe the effect of the defendant’s “conduct” on other firms (or the main rival) in the industry.

Von was the third-largest grocery market in the retail area, Los Angeles, on sales; while the shopping bag of food was number six in 1958. Their 1960 joint sales rose 7.5% an annual output of two and a half million. Your Los Angeles market seemed too small a part of their market to the government to fight. However, if the top ten companies had double combined; also their total market share could have been about a third of the retail market of Los Angeles.

To be fair to these stores, which had begun as the outgoing neighborhood store many Americans of his generation knew. Ten of the previous twelve years to the merger, the number of stores has increased to a little more than twice their number. The other positive numbers include increased sales and market share. Its merger positioned the number two supermarket chains in Los Angeles. Meanwhile, the discovery of individual owners of tennis shops in Los Angeles dropped by nearly two-fifths. In 1963, the numbers continued to decline.

The government witnesses lacked a thorough analysis of the facts and figures that the defense had in its possession. For example, from 1949 until 1958, nine of the top 20 competitors chains came into possession of 126 stores smaller rivals. An important defense witness gave details of previous acquisitions and mergers from 1954 to 1961.

They were in the top 10 stores in Los Angeles. Also, You might consider this as an ordinary person and discriminatory legal action. They should also have ground The nine competitors target rivals for smaller parties to legal action. However, the union of the two powers of the financial market was a threat to government control in the area of Los Angeles. The government reported data in its reply, the Federal Trade Commission prepared.

Case 6: Describe the initial legal action taken against or in favor of the defendant.

The initial legal action taken against the defendant is that the US government accused Von’s Grocery Company of violating Section 7 of the Clayton Act because it was an attempt to create a monopoly. The company appealed and the District Court ruled in its favor. Also, it is important to mention that the government made accusations against the company; because it wanted to purchase a smaller competitor in the retail grocery market that was called Shopping Bag Food Stores.

Case 7: Describe any subsequent legal action in the case (such as the Supreme Court), if any.

Once the case was resolved there was no subsequent action taken. The decision on the case was repealed by the District Court and Von’s Grocery Company could merge with, and subsequently absorb Shopping Bag Food Stores.

Case 8: Carefully describe how the model of Structure-Conduct-Performance has been applied in the case under consideration.

The history of the struggle against mergers in the United States began in 1890. At that time, Congress passed the Sherman Act to prevent monopolies. Distrust of Americans back to the founding of the country. Unfortunately, did not protect the smaller companies businessman larger monopolistic pressures. In 1897, the Court ruled that the U.S. government was against Trans-Missouri Freight Assn., 166 U.S. 290, 323. In [384 U.S. 270, 275], the Sherman Act did not protect the small businessman.

Congressional approval in 1914, 7 of the Clayton Act allowed the merger of corporations through the purchase of shares of its competitors. By contrast, business people find a loophole and buy their opponent’s assets. A blow to the fight against the Clayton Act device came with the endorsement of Judge Brandeis, Taft chief justice, and judges Holmes and Stone in 1926. As a result, there was a reduction in the number of large companies.

More things 01;

The action existed in 1950 Congress adopted the Celler-Kefauver Anti-Merger Act. Representative Celler and Senator Kefauver’s main references were 384 U.S. lawmakers 270, 276 for the period 1940-1947. They used the Brown Shoe Co. v United States, 370 U.S. 294, 315 to argue their points. They and other members of Congress had the same concerns. In contrast, 7 of the Clayton Act had stamps in their lagoon and extended its coverage using 384 U.S. 270, 277. Evacuation This involved mergers between competitors and stop all instances of mergers.

More things 02;

The U.S. v National Philadelphia. Banking led to Amendment 7 to cancel the anti-competitive tendencies. 384 U.S. 270, 279 is another case of reference that allowed the passage of the Celler-Kefauver Act. In United States v. El Paso Gas Co., 376 U.S. 651, 662 defendants El Paso Gas Co. were notified of antitrust charges and declined to postpone divestment from the beginning. Moreover, these two other similar cases of the United States v. du Pont & Co., 366 U.S. 316; United States v. Alcoa, 377 U.S. 271, 281 are pre-trial demand 384 U.S. 270, 303 which stood subjected to analysis.

More things 03;

Decisions of typos with the figures presented in court said the government ran a presentation to meet with any person or body quirks. The government regulator requires constant awareness of the impact of legislative developments and industry trends and ongoing. There is the need for external consultants to give their objective on huge demands especially in unknown actions reviews. In such cases, the now useless but necessary demand requires more in-depth research, planning, analysis, and the reality of how to fight cases misunderstood using antitrust laws. Also, This implies compulsory receive expert help to train the executors. This paper has emphasized that the demands of the past are benchmarks for current and future cases and judgments.

More things 04;

Upon focusing on how the SCP paradigm lived applied in the case being considered; the first thing to note is that during the 1950s and 1960s; the grocery retail industry stood characterized by ownership concentration. In other words, fewer and fewer owners started to own more and more stores (which they would go and absorb from smaller competitors). The structure and conduct of the market we’re going in the direction of fewer competitors of larger sizes. In the particular case of Von’s Grocery Company, it may see that its sales; when combined with the sales of Shopping Bag Food Stores, represented 7.5% of the total dollar amount of retail groceries sold per year in Los Angeles.

Combining this fact by the fact that between the late 1940s and the late 1950s both businesses involved with the merger had doubled in size (measured by the number of retail stores owned by each), and that the trend was going in the direction of larger (and fewer) competitors; it was decided that there was no violation of Section 7 of the Clayton Act. In sum, it was decided that there was no attempt of creating a monopoly; but rather a strategic decision imposed by the market.

8 Case Study of Antitrust Law US Essay; Image by Vural Yavaş from Pixabay.

References; Anti-trust Law Case Study. Retrieved from https://www.ukessays.com/essays/law/antitrust-law-study-7718.php?vref=1
January 11, 2022
Legal Process Outsourcing Companies BPO Firms

Legal Process Outsourcing Companies – An Emerging Need of Law Firms? Just like BPO or any other business, running a legal or law firm involves plenty of tasks that compete for attention. Also, today, law firms face a lot of pressure to improve functionality and services while cutting down costs. With increasing client expectations, more law firms are turning to legal process outsourcing to scale their operations; while staying productive and competitive in the industry.

Legal process outsourcing (LPO) deals with the practice of a law firm or in-house legal department of a company obtaining legal BPO services support from an external law firm to keep things running smoothly. It includes transferring the work of attorneys, legal assistants, lawyers; and, other legal professionals to outside legal service providers located domestically or overseas.

According to a report, the global market for legal process outsourcing is expected to grow at a CAGR of 31.8% from 2019 to 2025 and is estimated to reach $35.9 billion by 2025. There is a seemingly endless list of potential activities a firm could outsource. The most commonly outsourced legal support services include document review, litigation support, drafting of pleadings and briefs, legal research and writing, and contractual and patent services.

Why Legal Process Outsourcing Companies Has Become An Emerging Need for Law Firms?

Outsourcing legal support services domestically or to overseas providers can provide a multitude of benefits to keep your firm up and running efficiently. Let’s have a look at different advantages of availing legal process outsourcing for law firms.

Spotlight on core competencies;

When law firms outsource time-consuming and mundane tasks (non-core activities) to an outside legal outsourcing company; they can get more meaningful work done. Law firms engaged in class-action lawsuits can take advantage of legal outsourcing by contracting out the routine claims classification task. Transactional lawyers can outsource the work of drafting contracts; and, due diligence tasks to external legal outsourcing agencies with expertise in these areas of service.

Also, LPOs hire the best brains which can help your business stay ahead of the competition; especially small boutique firms looking to address and fix the internal skills gap. By doing so, law firms have more time to focus on new clients and businesses; and also offer more personalized services to the clients.

Greater business opportunities;

Previously, high-end law firms with sufficient infrastructure and manpower resources in place used to manage a majority of the legal cases. Small firms and individual practitioners, in particular, miss out on growth opportunities. However, things took a sharp turn with the advent of legal outsourcing. Availing legal process outsourcing is a good idea for small firms as they can parcel out those time-consuming processing & research tasks and spend more time acquiring more business.

Small firms can reap tremendous cost benefits by reducing their cost structures through labor arbitrage. For example, an in-house lawyer might cost them $140 an hour; while an external service provider attorney might cost $70 an hour. It also helps to expand the law firms’ practice area expertise and meet all the needs of your clients without hiring a full-time in-house employee.

Advanced data safety;

Law firms cater to handling clients’ personal data as well as confidential specifics of cases; which makes data security a top priority for firms as well as clients across the world. From bankruptcy cases to taxation & immigration litigation, data safety is crucial. Today, outsourcing agencies use advanced data security systems and maintaining the expected data security standards; which has instilled a sense of confidence in law firms when it comes to legal process outsourcing.

These are some of the reasons why availing legal process outsourcing has turned into an emerging need for law firms across the globe. If you are looking for expert help for handling non-core business activities; and, increasing your capacity without increasing overhead, legal process outsourcing is the way to go. Get in touch with one of our triple-vetted legal process experts at VE to add expertise and capacity to your practice. With us, you can outsource legal process outsourcing services to India & save costs! Outsourcing legal BPO services to VE will provide flexibility and cost savings over hiring additional staff and help your business grow.

Legal Process Outsourcing Companies An Emerging Need of Law BPO Firms?

September 9, 2021
Economic Laws: Meaning Definition Features Nature

What does mean Economic Laws? The Generalization or Law is the establishment of a general truth based on particular observations or experiments. Which trace a causal relationship between two or more phenomena. But economic laws are statements of general tendencies or uniformities in the relationships between two or more economic phenomena. So, what is the question we going to study?

The Concept of Economic Laws: first study their Meaning, Definition, Features, Nature, and finally Limitations.

Meaning and definition of Economic Laws: Economic laws are nothing more than careful conclusions and inferences drawn with the help of reasoning or by the aid of observation of human and physical nature. In everyday life, we see that man is always busy satisfying his unlimited wants with limited means. In doing so, it acts upon certain principles.

Marshall defined economic laws in these words,

“Economic laws, or statements of economic tendencies, are those social laws, which relate to those branches of conduct in which the strength of the motives chiefly concerned can be measured by money price.”

On the other hand, according to Robbins,

“Economic laws are statements of uniformities about human behavior concerning the disposal of scarce means with alternative uses for the achievement of ends that are unlimited.”

These two definitions are common in that they consider economic laws as statements of tendencies or uniformities relating to human behavior.

Features of Economic Law:

The following six points highlight the features of economic laws.

Are not Commands:

Economic laws are not orders of the state (government) and do not command. They formulate based on people’s behavior in the real world.

Are not Exact:

Since economic laws deal with the actions of human beings having free will. They are not as exact as the laws of the natural sciences. They are statements that are true only in general. For example, the statement that men will buy goods at the cheapest available market is true generally but not universally. A man intentionally pays a higher price to help a relative or a friend. But such cases form a small fraction of the total transactions of human beings.

Economists tacitly ignore these exceptional cases and frame them. Their laws on the expectation that men’s actions will, in the great majority of cases, follow a uniform pattern. This makes economic laws generally true, but less exact than physical laws. “Economic laws are probability laws, not exact relationships.” “Abnormal as well as normal patterns of probabilities occur in economics”, as Samuelson has commented.

Statements of Cause and Effect:

Economic laws, like scientific laws, are statements of cause and effect. They attempt to state the effects that will follow from particular causes. Unfortunately, in economic affairs, many factors operate simultaneously. And it is impossible to isolate each factor to find out its effects separately. The qualifying clause “other things remaining the same” (ceteris paribus), uses to get over this difficulty. But in economic life, other things generally do not remain the same. Hence, economic laws are never exact enough to enable accurate predictions or prophecies existing made.

Hypothetical:

Economic laws are hypothetical Economic laws are also hypothetical, i.e. They are conclusions drawn from certain assumptions or hypotheses. But in this, economic laws do not differ from other scientific laws. The laws of science also start from certain hypotheses and deduce certain consequences.

Predictions are Difficult:

As regards making predictions the following example may note. The simple and exact laws of gravitation enable astronomers to make accurate forecasts. But in the case of tides, the level of water depends on so many factors (e.g., the strength of the attracting force, geographical features of the country, etc.) that it is impossible to forecast the level accurately. Marshall, therefore, says, “The laws of economics are to compare with the laws of tides rather than with the simple and exact laws of gravitation”.

There are the Same Physical Laws:

Some laws dealt with in books of economics deal with inanimate nature, e.g., the Law of Diminishing Returns. These laws borrow from other sciences.

Nature of Economic Laws:

The following Nature of Economic Laws below are;

The nature of economic laws is that they are less exact as compared to the laws of natural sciences like Physics, Chemistry, Astronomy, etc. An economist cannot predict with surety what will happen in the future in the economic domain. He can only say what is likely to happen shortly. The reasons why economic laws are not as exact as that of natural sciences are as follows:

First

Natural sciences deal with the lifeless matter. While economics, we are concerned with the man who endows with the freedom of or may act in whatever manner he likes. Nobody can predict with certainty his future actions. This element of uncertainty in human behavior results in making the laws of economics less exact than the laws of natural sciences.

Secondly

In economics, it is very difficult to collect factual data on which economic laws are to be based. Even if the data stands collected it may change at any moment due to sudden changes in the tastes of the people or their attitudes.

Thirdly

Many unknown factors affect the expected course of action and thus can easily falsify economic predictions. Dr. Marshall has devoted one chapter in his famous book “Principles of Economies” to discussing the nature of economic laws. He writes, that laws of economics are to compare with the laws of tides rather than with the simple and exact law of gravitation.

The reason for comparing the laws of economics with the laws of tides by Marshall is that the laws of tides are also not exact. The rise of tides cannot be accurately predicted. It can only say that the tide expects to rise at a certain time. It may or may not rise. Strong wind may change its direction to the opposite side. Instead of rising may fall. So is the case with the laws of economics.

Scientific or Natural or Physical Laws:

Economic laws are like scientific laws which trace out a causal relationship between two or more phenomena. As in natural sciences, a definite result expects to follow from a particular cause in economics. The law of gravitation states that things coming from above must fall to the ground at a specific rate, other things being equal. But when there is a storm, the gravitational force will reduce and the law will not work properly.

As pointed out by Marshall, “The law of gravitation is, therefore, a statement of tendencies”. Similarly, economic laws are statements of tendencies. For instance, the law of demand states that other things remain the same, a fall in price leads to an extension in demand and vice versa. Again, some economic laws are positive like scientific laws. Such as the Law of Diminishing Returns which deals with inanimate nature.

Since economic laws are like scientific laws, they are universally valid. According to Robbins, “Economic laws describe inevitable implications. If the data they postulate are given, then the consequences they predict necessarily follow. In this sense, they are on the same footing as other scientific laws.”

Non-Precise like the Laws of Natural Sciences:

Despite these similarities, economic laws are not as precise and positive as the laws of natural sciences. This is because economic laws do not operate with as much certainty as scientific laws. For instance, the law of gravitation must operate whatever the conditions may be. Any object coming from above must fall to the ground. But demand will not increase with the fall in price. If there is a depression in the economy because consumers lack purchasing power.

Therefore, according to Marshall, “There are no economic tendencies. Which act as steadily and can measure as exactly as gravitation can, and consequently. There are no laws of economics. Which can compare for precision with the law of gravitation”. Their control of experimentation in the natural sciences and the natural scientist can test scientific laws very rapidly by altering natural conditions such as temperature and pressure in their experiments in the laboratory.

But in economics

Controlled experiments are not possible because an economic situation is never repeated exactly at another time. Moreover, the economist has to deal with the man who acts by his tastes, habits, idiosyncrasies, etc. The entire universe or that part of it in which he carries out his research is the economist’s laboratory. As a result, predictions concerning human behavior are liable to error.

For instance, a price rise may not lead to a contraction in demand rather it may expand it. If people fear the shortage of goods in anticipation of war. Even if demand contracts as a result of the price rise. It is not possible to predict accurately how much the demand will contract. Thus economic laws “do not necessarily apply in every individual case. They may not be reliable in the ever-changing environment of the real economy. And they are in no sense, of course, inviolable.”

Non-predictable like the Law of Tide:

But accurate predictions are not possible in economics alone. Even sciences like biology and meteorology cannot predict or forecast events correctly. The law of tide explains why the tide is strong at the full moon and weak at the moon’s first quarter. On this basis, it is possible to predict the exact hour when the tide will rise. But this may not happen. It may rise earlier or later than the predicted time due to some unforeseen circumstances.

Marshall, therefore, compared the laws of economics with the laws of tides “rather than with the simple and exact law of gravitation. For the actions of men are so various and uncertain that the best statements of tendencies, which we can make in a science of human conduct, must need be inexact and faulty.”

Behaviorist:

Most economic laws are behaviorist, such as the law of diminishing marginal utility, the law of Equimarginal utility, the law of demand, etc., which depend upon human behavior. But the behaviorist laws of economics are not as exact as the laws of natural sciences because they are based on human tendencies which are not uniform. This is because all men are not rational beings.

Moreover, they have to act under the existing social and legal institutions of the society in which they live. As rightly pointed out by Prof. Schumpeter: “Economic laws are much less stable than are the ‘laws’ of any physical science…and they work out differently in different institutional conditions”

Indicative:

Unlike scientific laws, economic laws are not assertive. Rather, they are indicative. For instance, the Law of Demand simply indicates that other things being equal, quantity demanded varies inversely with price. But it does not assert that demand must fall when price increases.

Hypothetical:

Prof. Seligman characterized economic laws as “essentially hypothetical” because they assume ‘other things being equal and draw conclusions from certain hypotheses. In this sense, all scientific laws are also hypothetical as they too assume the ceteris paribus clause. For instance, other things being equal, a combination of hydrogen and oxygen in the proportion of 2:1 will form water. If, however, this proportion is varied or/and the required temperature and pressure are not maintained, water will not be formed.

Still, there is a difference between hypothetical elements present in economic laws and against scientific laws. It is more pronounced in the former because economics deals with human behavior and natural sciences with the matter. But as compared with the laws of other social sciences, the laws of economics are less hypothetical but more exact, precise, and accurate.

This is because economies possess the measuring rod of money which is not available to other social sciences like ethics, sociology, etc. which makes economics more pragmatic and exact. Despite this, economic laws are less certain than the laws of social sciences because the value of money does not always remain constant. Rather, it changes from time to time.

Truisms or Axioms:

Certain generalizations in economics may state as a truism. They are like axioms and do not have any empirical content, such as ‘saving is a function of income,’ ‘human wants are numerous’, etc. Such statements are universally valid and need no proof. So they are superior to scientific laws. But all economic laws are not like axioms and hence not universally valid.

Historico-Relative:

On the other hand, economists of the Historical School regarded economic laws as abstractions that are historical-relative, that is economic laws have only a limited application to a given time, place, and environment.

They have limited validity to certain historical conditions and have no relevance to the analysis of social phenomena outside that. But Robbins does not agree with this view because according to him, economic laws are not historical-relative. They are simply relative to the existence of certain conditions which assume to give. If the assumptions are consistent with one another and if the process of reasoning is logical, economic laws would be universally valid.

But these are big “ifs”. We, therefore, agree with Prof. Peterson that economic laws “are not detailed and photographically faithful reproductions of a portrait of the real world, but are rather simplified portraits whose purpose is to make the real world intelligible.”

Economic Laws: Meaning, Definition, Features, Nature, and Limitations. Image credit from #Pixabay.

Limitation of Economic Laws:

One major drawback of economic laws is they lack generality. For example, the laws developed to explain the nature and functioning of capitalist economies do not have any relevance to socialist countries. For example, Alfred Marshall developed the laws of demand and supply which apply in a free market in the absence of government intervention. Such laws do not apply in erstwhile countries like the former Soviet Union where the price (market) system yielded place to the planning system.

In a planned economy, the market mechanism replaces by government allocation or rationing. So, the question of applying the laws of demand and supply does not arise. Thus, economic laws lack generality and are not universally applicable. Furthermore, some laws of economics which have been developed in the context of advanced industrial countries may not find application in developing countries like India.

As V. K. R. V. Rao has pointed out, the multiplier principle, as enunciated by Keynes in the context of the advanced countries of the world, does not work in developing countries like India. This is attributable to the structure of such economies. Similarly, the Quantity Theory of Money has been developed in the context of industrially advanced countries. It seeks to establish an exact, proportional relationship between money and prices.

But, it cannot explain’ the present price situation in India.

Here, inflation is not a purely monetary phenomenon as predicted by the Quantity Theory. These two examples make one thing clear at least — the laws and theories of economics developed in the context of advanced countries cannot be applied in developing countries like India. There is a feeling among some groups of economists that, people in developing countries like India behave and respond differently from those in advanced countries.

For example, greater self-consumption of farmers in India explains why the supply response of agricultural commodities is not always favorable in the event of a rise in the price of agricultural products. It is often observed that, if the price of a particular commodity rises, farmers produce less of it to maintain the same level of income. Thus,’ they not only produce less at a higher price but generate less marketable surplus when the price rises. Thus, the marketable surplus of, say, wheat varies inversely with its price.

But, in developed countries, it is observed that, as usual, the supply curve of agricultural output slopes upward from left to right, and the marketable surplus increases when the price rises. All these examples make it abundantly clear that most of the laws and principles of economics which have been developed in the context of advanced countries cannot be applied in developing countries like India.

December 10, 2018