Negligent Misstatement

Law of tort dominates civil conduct in all aspects of life and numerous of violations of duties are all distinctly set. It provides remedies for certain civil wrongs that have not been arisen from the contractual duties. Under tort law, whether it is an intentional act or accident, the injured victim (plaintiff) may be capable to recover damages from the person that liable for the harmed caused (defendant). Negligence is the most significant and developed category of tort in terms of money and varied of cases involved.It believes that the plaintiff should bear their own adversities unless there is a proof shows that the defendant owes of duty to comply with ordinary care and skill. There are few elements have to be shown if the claimant wish to succeed in compensation which is the existence and breach of a duty of care, losses or damages must be resulted from the reliance on that breach, and lastly is to determine whether the losses were an equitably foreseeable consequence of the de fendant’s actions.Negligent misstatement refers to a representation of fact that been carelessly made, which is relied on the plaintiff to their advantages (O’Riordan, 2007, p. 1). In 1964, the tort of negligent misstatement has been established and it has gained more recognition in this decades. It covers opinions and reality statements made by negligence. However, the tort had lead to certain level of floodgate concerns in the early century and today the courts are still less well embrace its liability.In the present day setup, accountants have been regarded as prominence role. They inspect mistreats and irregularities of the company’s financial aspects and protect the benefits of the stakeholders and investors. When the accountants or auditors form a contractual relationship with their potential clients, there are many debatable legal area emerge in respect of the people who possible rely on the company reports made or advices provided in a non contractual ca pacity.In fact, most of the plaintiffs are unfamiliar to the accountants in the situation. Even though the negligent law enables the parties with no contractual relation to accuse for damages constantly after the negligent behavior caused, the succeed of the accounting firm still need to depend on the objective of the reports made, accounts created, and the establishment of a duty of care between the accountant and the claimant who making compensation in negligence. The appropriate law may be obtained from numerous of significant cases.During the early 1980s, there were trends of the judicial extension of the amount of third parties to whom an auditor or accountant may be held liable and this period was referred as the â€Å"dark ages† of accountant’s liability. There is a duty of care if it is to plaintiff. In JEB Fasteners v Marks Bloom & Co 1983, the plaintiff took over the private company after reading an unqualified report prepared by the accountants Mark Bloom. T he accountants knew the plaintiff was facing financial crisis and searching for financial help on the preparation of statements.Soon JEB discovered that the financial statements included some errors and the value of stock was overstated. Thus, he took an action in negligence against the accountants and Anns foreseeability test was applied in this case. The action failed on the grounds of causation and the accountants did not take the liability for their negligence and the statements were not of the main cause of making loss profit because it was revealed that acquisition of the company was to obtain the expertise of the directors without the concern of the current stock’s value.However, Queen's Bench Division held that the suitable test for developing a duty of care is whether the accountants aware or should have known rational that an individual probably made a keys decision depend on the audited financial reports and duty of care was owed. Under the Misrepresentation Act 19 67 s. 2 (1), when a person entered a contract and suffered loss in business because of the misrepresentation that made by another party, he has the right to claim for damages and the claimant that create the misrepresentation fraudulently are liable.There was no inducement between the parties because JEB entered the contract for independent reasons. The defendants were unaware of the misrepresentation and it was considered as a negligent act instead of fraudulence. Besides, the complainant judgement was not influenced by the negligent statement and he did not rely on the information to take over the company. Throughout the decades of the 1990s, there had been an international trend arose toward a more limited scope of negligence for accountants liability to clients.This important reversal has been found by landmark suggestions from some landmark cases such as Caparo v Dickman 1990. This case concerns about the limits of the potential liabilities for the accountants through auditing the annual accounts. The respondents, Caparo Industries Plc had took over the Fidelity Plc by acquiring 29. 9% of the issued shares and making a successful bid for the remainder shares in the market on 1984.The annual audit of Fidelity was regulated by statute and the Companies Act 1985 has constructed that what the statutory accounts should embrace minutely. Later, Caparo sued against the appellants, auditors of Fidelity Plc for few reasons. The respondent alleged that the company’s accounts were inexact and been audited negligently, as a result they had suffered a great loss of over ?400,000. Through the reliance on the accounts, the respondents urged to purchase and bid for further shares.Caparo claimed that the appellants had owed them a duty of care as potential bidders for the company because they should have foreseen the 1984 outcomes that caused Fidelity vulnerable for an existing shareholder desired to acquire extra shares and establish a take-over bid. Based on the decisions of the Queen’s Bench, there was no necessary for the a ppellants to owe a duty of care to Caparo as an investor because of the absence of direct or close relationship between the parties.Although the appellants might owe statutory duties to stockholders, but there was no common law duty to the individual among them. The case was brought to the Court of Appeal afterwards and it was held it was fair, just, and reasonable that the auditors owed a duty of care to the individual shareholders instead of the investors, so they would be able to recover in tort by relying on the negligent statements, whether by issuing or reserving the shares or by acquiring additional shares with the neighbourhood principle.Nevertheless, when the House of Lord led the judgement after inspected some relevant cases, they ruled that there was no duty owed by auditors to the respondents or individual shareholders because the court would not infer a relationship of proximity between the parties when to act so would result in unlimited liability on the auditor’s part. A relationship of proximity will only exist when the auditor aware that the statement will have an interaction with people who rely on it for the purpose of business or transaction’s decision making.Since the individual shareholders were in no better place compared to the majority of publicity and the accountant's statutory duties to complete the annual account were wholly owed to the body of stockholders, an accountant was not liable to anyone who tended to acquire further market shares of Fidelity. Moreover, the main purpose for all accounts audited and prepared is to spur the company shareholders to create long term strategy or plans using the information rather than purchase shares to gain extra profits.In my opinion, on the basis of the criteria for imposing liability, the complicated special relationship between the bidders that involved in the take-over, investors, and lenders cannot fully rely on the audited statements but other internal or external factors need to take into the consideration too. There was no statutory duty for an accountant to recommend that they planned to safeguard the interests of the potential investors. Caparo should not contemplate and estimated the amount of bid based on the single statement.It was his duties to make the inquiries. The imposition of a duty of care on the appellants would not succeed when the investors rely on the statement for some unspecified usage. The indispensably proximity relationship ought to be emerge to restrict what would otherwise turn into an unconditional duty of care owed by accountants for the account’s precision to satisfy the people who might foreseaably depend on them, yet foreseeablility is incapable to be the fundamental element to impose the duty.According to Companies Act 1985, the imposition of a duty was only referring to the stockholders as a class; these duties would not expand to an individ ual save as a part of the class in respect of some class activities as the act only develop relationship between accountants and the stockholders. Thus, the accountants are not liable for the damages to anyone who making a failure investment in reliance on the unqualified suggestions. The court has confined the imposition of duty care on accountants to the non clients constantly for the negligent misstatement after the Caparo case.Morgan Crucible Co plc v Hill Samuel Bank Ltd 1991 is in one of the prominent case with the post-Caparo decisions applied in. With the intention that bidders should rely on the accounts, directors and the financial advisers of the public company had formed an express representation regarding the accuracy of forecasted profits and statements. Soon the bidder alleged that he made loss in reliance on those forecasts. The original statements were drafted on the in line with a duty of care according to the reasonable foreseeability. In the beginning, the leaves that the plaintiff applied to amend the statement were rejected and he appealed.Following Caparo, the English Court of Appeal ruled that the auditors did not owe a duty of care to the claimer prior to the first bid and the duty of care raised for second bid was not decided by the court because if the forecasts were unprecise then the auditors could foreseen the loss, they realized the claimer’s identity and intended him to rely on the negligent misstatement, yet most of the data of the accounts was exclusive to the claimer. Under UCTA 1977 s2(2), exclusion of liabilities that caused by negligence other than death or injuries must satisfy the requirement of reasonableness of term and notice.I deemed that the defendants were responsible for the consequential damages because the express representation was made with an intention before they proposed to the bidders. They noticed the bidder’s reliance on the reports so negligent mistakes on the statements were not allowed t o be made. There was no reasonable term and notice could be provided in this case, therefore liability was not excluded. CONCLUSION In conclusion, although the growth of law regarding to negligent misstatement is not dramatic, yet the needs to confine the limit of imposition on duty of care has been responded.Sometimes, a professional accountants or auditors may not notice the degree of their potential liability. It is important to let an accountants take their responsibility on those negligent caused in virtue of the number of people adversely influenced by them (Cooke, 2003, p. 70). Misrepresentation Act 1967 is formulated to against fraudulent or false statements prepared by the professionals and they can restrict the liability to certain financial amount due to the Companies Act 2006.Basically, the imposition on duty of care should be determined based on the case’s circumstances, examine the purpose of proposals, the special skills owned by the professionals, aware that t he proposals given might be relied upon, even the voluntariness on assuming the level of their duties. The knowledge of the accountants upon the identity of plaintiff is not necessary, but it needs to be verified through causation that as a result of the accountant’s negligent advices, the plaintiff suffered economic loss. However, there is a high reluctance to offer liabilities where the losses are purely economic or psychiatric injury.

Civil Procedure Outline

Civil Procedure Outline I. Personal Jx- in what states can the ? sue the ?. a. In personam- pwr over the person. General jx- the ? can be sued in that state for a claim that arose anywhere in the world. Specific jx- the ? is being sued for a claim that arose from their actions w/in the forum. i. Constitutional Limits- Due Process Circle 1. Pennoyer v. Neff- Traditional basis for in personam 1. The ? is served with process in the forum- presence- general jx 2. Service on the ? agent in the forum 3. The ? is domiciled in the forum- general jx 4. The ? consents to jx 2. Hess v Pelosky- expanded the traditional basis for in personam jx 1.The ? wanted to sue the ? for causing an accident in the state, but under the traditional way couldn’t serve process bc the ? had left the state. That state court was able to uphold jx through the nonresident motorist statute- if you drive in our state; you are consenting to in personam jx and appointing a state official as your agent for service. Always specific jx. 3. International Shoe v. Washington 1. There is jx if the ? has such minimum contacts with the forum so that jx, does not offend traditional notions, fair play and social justice. i. You can serve process outside the forum by this time, as long as you meet the Shoe Test ii.There are 2 parts contact and fairness iii. Doesn’t overrule Pennoyer, test if ? is not present when served 4. McGee 1. The TX company solicited the business in CA 2. CA had an interest in providing justice for its residents. 5. Hansen 1. Under Internaitonl shoe the contact btwn the ? and the forum must result from the ? ’s purposeful availment. The ? must reach out to the forum. 2. No jx in FL over a DE bank, the bank only serviced a client in the forum, didn’t reach out. 6. World Wide Volkswagen- 1. NY family buys car in NY to move to AZ, in car accident in OK sue in OK for a car defect, sue 2 NY ? n OK, no jx 2. No purposeful availment by the ?. 3. It must be foreseeabl e that the ? could get sued in that state, not that your product could get to the state. 7. Burger King- MI residents owned a franchise in FL; got sued there and the ? argued that it was unfair to allow suit in FL 1. Court makes it clear that there are 2 parts under International Shoe: contact and fairness. 2. Contact is assessed first, it no relevant contact then it could be fair to sue there but still no jx. 3. The ? had reached into FL for a franchise so contact met, the ? said it was unfair and the Court said tough you can travel i.Court said that you have to show that you are at such a great disadvantage that it would be unfair to litigate there ii. Tough to prove bc wealth of the parties is irrelevant. 8. Asahi Metal v. Superior Court NO LAW 4-4 split – stream of commerce case. 1. Brennan theory -it is a contact if I put the product in the stream of commerce and I reasonably anticipate it could end up in states c, d, e 2. O’Connor theory- need the Brennan theory plus an intent to serve states c, d, e 9. McIntyre- stream of commerce NO LAW- split 3 ways- English company only reaches out to Ohio; the Ohio Company then sells everywhere.Individual hurt in Jersey and sues the English company there, Supreme Court no jx, Majority agreed on no jx 1. 4 justices adopt O’Conner theory- found no intent 2. Bryer and another –don’t take sides, agrees with both tests just doesn’t see enough facts 3. Ginsburg- dissent- would have found jx, she said if you target the US, then you can be sued in any state where your product does harm 10. Burnham- Jersey ? sued in CA, the ? is present in CA when served with process. Sued on general jx. The question raised is whether traditional service is good by itself or do you need to go through the International Shoe test as well.Split 4-4 1. Scalia theory- that presence when served is ok by itself. Traditional basis is an alternative to International Shoe test. 2. Brennan theory- always apply International Shoe test, it has replaced the traditional basis. 11. Goodyear- when is there general jx. 1. Prior to Goodyear, Court said that there was general jx provided that the ? had continuous and systematic contact with the forum. 2. Goodyear -not enough, now need this, and also the forum must be a place where the ? is essentially at home i. For ppl- domicile ii. For business- state of incorporation and principle place of business 3.This cannot be based simply on buying and selling in the state. ii. Steps for analysis 1. Constitutional Analysis- does a traditional basis apply- it may be enough, then mention the split that International Shoe always applies 2. The Shoe Analysis 1. Must be relevant contact with the forum i. Purposeful availment on the part of the ?. ii. Foreseeable that you could get sued there, not that your product gets there. 2. Specific or General Jx -relatedness- does this claim arise from the ? contact with the forum. i. If yes, then you can sue for specifi c jx. ii. If no, then you can only sue for general jx. 3. fairness factors- it’s up to the ? to show that it is a burden 1. inconvenience for the ? 2. forum state’s interest 3.? interest 4. interest in efficiency 5. shared substantive policy iii. Statutes- every state has statutes for residents for service and notice. 1. Every state has statutes for traditional service- domicile. 2. For non-residents 1. Nonresident Motorist Statute- specific jx- had to stem from a car accident 2. Long Arm Statute- go after nonresidents, specific jx, i. CA- we have jx to the fullest extent of Constitution. ii. Laundry List- transacting business, commits a tortuous act in the forum. I. e. : ? akes a widget in State A and sells widget to ? in State B and ? is injured, did tort occur in state b- courts are split. b. In Rem- pwr of the court over a ? property w/in jx- the fight btwn ? and ? is about the property, the fight is whose land is it i. Attachment statutes- court can attach propert y that ? owns or claims to own ii. Constitution- Shaffer v Heitner- held that seizing property at the outset of the suit is not enough. Additionally, the ? must meet the International Shoe standards. c. Quasi In Rem- pwr of the court over a ? w/in the jx-the suit at hand has nothing to do with property ownership. i. Pennoyer v.Neff- dealt with the underlying case btwn Mitchell and Neff- breach of contract. Court held that it is fine to use property but the property had to be attached at the time of filing the suit. ii. Attachment statutes and Constitutional Tests are the same for quasi in rem. II. Notice- has to be given to the ? and she has to have a chance to be heard a. Service of Process- FRCP Rule 4- process- consist of the summons and a copy of the complaint i. Summons content- Rule 4 a 1 ii. Service can be made by any non party who is at least age 18-Rule 4 c 2 iii. How to serve an individual- Rule 4 e 2- 3 ways 1. Personal service- can be done anywhere . Substituted service- must be done at ? dwelling or usual abode, and must serve someone of suitable and discretion WHO RESIDES THERE! 3. Serve the ? agent iv. Also look to Rule 4 e 1- allows methods of state law where either the federal court sits or the state laws in the state where process is served v. Serving a Business- Rule 4 h 1- you can serve an officer, or a managing or general agent. Rule 4 e 1 also applies vi. Waiver of Service- Rule 4 d- waiving process by mail. If form not mailed back, have to do it the normal way, but the ? will have to pay for the service of process b. Constitutional Element- if you become aware that the ? idn’t receive service, you might have to try another way. III. Subject Matter Jx a. Diversity of Citizenship i. 28 US  §1332 a 1- 2 Requirements for Diversity 1. Case is between citizens of different states 2. Amount in controversy exceeds $75,000 1. Citizens of different states i. Complete diversity rule- there is not diversity if any ? is a citizen of the same state as any ?. ii. A US citizen is a citizen of the US state in which you are domiciled. YOU ONLY HAVE ONE DOMICILE 1. Physical presence 2. Form the intent to make it your permanent home 3. Citizenship of a Corporation 28 US  §1332 i. State of incorporation AND i. Where the principle place of business 1. Hertz case- the principle place is where the managers direct, control, and coordinate the business activities- Nerve Center (usually headquarters) 4. Non incorporated business 1. Look at citizenship of all the partners/members ii. Amount in controversy 1. Must exceed $75,000 2. Aggregation- adding multiple claims to reach the required amount. We aggregate claims if there is one ? and one ?. Cannot aggregate if there are multiple ? and multiple ?. 3. If there are joint claims, use the total amount of the claim. Here the number of parties is irrelevant. b. Federal Question i. 8 US  §1331- we need a question that arises under federal law ii. Well pleaded complaint rule 1. Look on ly that the compliant. 2. Focus on the claim itself 3. Is the ? enforcing a federal right, is so meets the well pleaded complaint rule. 4. RR v Mottley- Court held that the Mottley’s weren’t enforcing a right under the federal law and not a federal question. c. Supplemental Jurisdiction i. 28 US  §1367- gets non-federal question, non-diversity claim into federal court ii. Mine Workers v Gibbs-labor disputes in mines- ? sued the ? on a federal claim and a state claim that arose from the same transaction or occurrence.Supplemental jx is ok if claim 1 and claim 2 shares a common nucleus of operative fact, then both claims can come in. Gibbs test- same overall dispute. Gibbs is always met if the 2 claims arise from the same transaction or occurrence 1. Does  §1367 a grant jx? Yes if it meets Gibbs 2. Does  §1367 b take jx away? ONLY APPLIES IN DIVERSITY CASES and only takes away jx over claims by the ? , not the ?. d. Removal - §1441,  §1446,  §1447 i. Allows a ? sued in state court to have a case removed from state court to federal court. If the case doesn’t belong there, then the federal court will remand it back to the state court. i. General rule it is removable if there is federal subject matter jx 1. EXCEPTION- you cannot remove a diversity case if any ? is a citizen of the forum, in state ? rule. Only applies in diversity, not federal question. 2. All ? must agree to the removal 3. You must remove w/in 30 days of service of the document that first makes the case removable. Usually, 30 days of service of process, from service, not from filing. 4. You can remove only to the federal district court that embraces that states courts (I. e. – if filed in St Louis, then you can only remove to Eastern Dist. of Missouri) IV. Venue .  §1391 a- diversity and b- federal question- same for both diversity and federal question i. Lay venue in any district where all ? reside. 1. If all ? reside in the same state but different distri cts, you can lay venue where any of them reside. 2. Reside- for ppl- domicile- same as citizenship. For businesses-  §1391 c (applies to all businesses)- business resides in all district where it is subject to personal jx when the case is filed. ii. Lay venue in any district where a substantial part of the claim arose b. Transfer of Venue- moving from one court to another in the same judicial system.The original federal court- transferor. The court to which we send it is the transferee.  § 1404 and  §1406- IN BOTH STATUTES THE TRANSFEREE MUST BE A PROPER VENUE AND HAVE PERSONAL JX OVER THE ? W/O WAIVER BY THE ?. i.  §1404- Convenience for parties and witnesses and in the interest of justice 1. Public and Private Factors- footnote 6 of Piper case ii.  §1406 a- The transferor is an improper venue- you can dismiss or transfer the case in the interest c. Forum non convenient- a court dismisses bc there is another court that makes more sense for the case to be tried. You dismis s bc transfer is impossible.The proper court is in a different judicial system. Usually applies in cases where the proper court would be a foreign court. i. Piper Case- case dismissed in the US fed court by of forum non convenient- should have been filed in Scotland 1. Reasons to dismiss- footnote 6 of Piper case. Common sense. V. Erie Doctrine a. In federal court in a diversity case- an issue is to be decided, the judge must decide if she must apply state law. i. Erie- In a diversity case, the judge must apply state law for substantive state law. Erie decides this- Rules of Decision Act  §1652 and the US Constitution- 10th Amendment. . Element of a claim is always substantive law ii. Hannah v. Plumer- shows that Erie Doctrine is 2 doctrines: 1. Is there a federal law on point that directly conflicts with state law, Ie: FRCP, statutes, Rules of Evidence. , If there is yes, we apply the federal law as long as it is valid (based upon the Supremacy Clause of the Constitution. ) 1. Te st validity under the Rules Enabling Act  §2072- Shady Grove-4 justices said that all you have to show that the rule is arguably procedural; Stevenson- said you have to look and see if the rule intrudes into state policy.A FRCP has ever been invalidated. 2. If there is no federal law, Erie Prong- Rules of Decision act and Constitution- if substance, must follow state law. iii. Three tests for is it substantive law 1. Outcome Determinative- Guarantee Trust v. York- under state statute of limitations case was filed too late, case filed in federal court, judge wanted to ignore state on statute of limitations, court held no bc it is outcome determinative. If you apply the state law, case dismissed. If you apply federal rules, the case goes forward. Bc there are different outcomes, it is substantive. 2.Balance the interest- Byrd v Blueridge- state law said a specific issue is decided by a judge, not jury. Filed in federal court, judge wanted to let it go to the jury. Not clearly outcom e determinative, but court said if something is not clearly substantive, follow state law, unless the federal court has an interest in doing it differently. Weigh the interests of the 2 systems. In this case there was no reason for this rule, so the federal interest outweighed the state interest in this case. 3. Twin aims of Erie- comes from Hanna 1. Avoid forum shopping 2. Avoid inequitable administration of law. i.To apply this, ask at the beginning of the case, if the federal judge ignores this state law, will it cause parties to flock to federal court. We don’t want this bc it provides an advantage to diversity cases. VI. Pleadings a. Complaint- pleading filed by ?. Rule 8 a i. Statement of subject matter jx ii. Short and plain statement of the claim iii. Demand for relief 1. Historically- notice pleading. Put enough in there to put the others side on notice. 1. Twombly and Iqbal- interpretation of Rule 8 a 2 i. The court will ignore conclusions of law ii. The ? must plea d facts supporting a plausible claim iii.Court will use its own experience and common sense to decide what is plausible- Subjective 2. You must give more facts/plead detail for fraud, special damages b. The ? response- Rule 12 i. The ? must respond w/in 21 days ii.? can respond by answer or motion 1. Rule 12 e- motion for a more definite statement 2. Rule 12 f- motion to strike from a pleading iii. Rule 12 b Defenses- 7 defenses- motions to dismiss, can be made by motion or by answer 1. Subject matter jx 2. Personal jx 3. Improper venue 4. Insufficient process- document px 5. Improper service of process- px with service 6. Failure to state a claim . Failure to join a party under Rule 19 (indispensable party) iv. Rule 12 g and h- strict things about waiver 1. Defenses Rule 12 b 2-5 must be put in the first Rule 12 response (motion or answer- which ever you do first) if you don’t put them in, then they are waived 2. Rule 12 b 6 and 7 can be raised for the first time any time th rough trial (not on appeal) 3. Rule 12 b 1 can be raised at any time (any time even on appeal) v. Answer must include 1. Must respond to the complaint 1. Rule 8 b 2. Failure to deny- is an admission, exception for damages 2. Must raise affirmative defenses Rule 8 c . Raises a new fact, and if ? is right they win 2. Must plead them or risk waiver of them VII. Joinder a. Determined the scope of the litigation. First find the Joinder rule then look for subject matter jx i. Claims of joinder Rule 18 a- you can put in any claims you want b. Claim Joinder by the ? i. Counterclaim- Rule 13 a and b- claim against an opposing party (against someone who sued you. 1. Rule 13 a- compulsory counterclaim- one that arises from the same transaction or occurrence. Must be claimed now or waived. Cannot be brought separately. Only compulsory counterclaim.Always meets  §1367 a and doesn’t get knocked about by  §1367 b bc b only applied to claims by ?. This is a counterclaim by a ?. 2. Rule 1 3 b-Permissive counterclaim- doesn’t arise from the same transaction or occurrence, can be brought now but doesn’t have to be. ii. Crossclaim- Rule 13 g- against a co-party 1. Always must arise from the same transaction or occurrence. Not compulsory, can be filed not or later. c. Proper Parties i. Rule 20 a- tool available to the ?. 1. Rule 20 a 1- can join together if claims arise from the same transaction or occurrence and raise at least one common question 2.Rule 20 a 2- which ? can the ? join. Same as above d. Necessary and indispensable parties i. Absentee party is necessary (party A) ii. Rule 19. Is A necessary? Rule 19 a 1- A is necessary if the meet any of the tests under 19 a 1 1. 19 a 1 A- w/o A the court cannot accord complete relief. 2. 19 a 1 B i- if A interest may be harmed if they are harmed. 3. 19 a 1 B ii- if A interest may subject ? to multiple or inconsistent obligations. Joint tortfeasers are not necessary to bring into a suit. iii. Is it feasible t o bring in party A 1. Will bringing in party A mess up diversity 2.Is there no personal jx over party A iv. If they are necessary and the party cannot be joined 1. Proceed w/o party A- run risk of harms 2. Dismiss the entire case- not fair to the ? 1. 19 b tells you what to consider- 4- we don’t dismiss unless the ? has another forum to receive relief in (i. e. maybe a court that has jx over all parties where the case could be refiled. ) i. Keep in mind, when the court decides to dismiss, then we label the absent party as indispensable and Rule 12 b 7 kicks in. e. Impleader- Rule 14- joining someone new- third party practice. The third party ? may be liable to the ? or the ? ’s claim i. e. -indemnity or contribution i. Can only be brought by the ?. This new party is third party ?. Rule 14 a 1 ii. Once the third party ? is brought in, the ? can assert a claim against the third party ? as long as the claim arises from the same transaction or occurrence. Rule 14 a 3 iii. The third party ? can assert a claim against the ? as long as it arises from the same transaction or occurrence. Rule 14 a 2 f. Intervention- Rule 24 the absentee party brings themselves into the case i. Must do so timely ii. Must choose what side to join (on the ? or ? ) iii. 2 types 1.Intervention of right Rule 24 a 2- you have a right to intervene if your interests may be harmed if you are not joined. 2. Permissive Intervention Rule 24 b 1- you can join at the court’s discretion if your claim has a common question with the underlying claim. g. Class Action- always brought by the representative- they sue on behalf of the ? class i. Meet the requirements of Rule 23 a 1. Numerocity- joinder of all parties would be impractical 2. There has to be a question in common with all claims 3. Representative parties claims are typical of the class 4. Representative parties will adequately protect the interest of the class ii.Types of Class Action 1. Rule 23 b 3- have to show common que stions predominate over individual questions. 2. The class action is the best way to settle the suit. iii. Motion to certify 1. Not a class action until the court certifies. If it does certify then it must define the class and appoint class council Rule 23 c iv. Notice of Pendency 1. IN THE RULE 23 b 3 CLASS THE COURT GIVES NOTICE TO ALL PPL IN THE CLASS. You have the right to opt out of the class or risk being bound by the result. This notice is paid for by the representative. 2. All parties of the class are bound unless they opted out of the class.You can only opt out of a B 3 class, not a B 1 or 2 v. Settlement of a certified class action 1. Must be approved by the court- they get feedback from members of the class action vi. Subject Matter Jx 1. Citizenship of the class action is determined by the representative party 2. Amount of controversy is the representative’s claim amount VIII. Discovery a. Required Disclosures- Rule 26 a 1 i. Must identify ppl anyone who has disco verable information that could be used on the merits during trial ii. Must identify documents, electronic info, or things that may be used iii. Rule 26 a 3- Pretrial disclosures . Discovery Tools i. Deposition Rule 30-oral deposition and 31- written deposition 1. You can depose a party or non party. To deposition a nonparty, you need to serve with subpoena bc they don’t have to show up. ii. Interrogatories Rule 33 1. Written answers under oath must respond to them in 30 days 2. Only go to parties iii. Request to produce Rule 34- asking to see stuff 1. Can be sent to parties and non parties. To get the nonparty you need a subpoena iv. Medical examination 1. Need a court order 1. Need to show that the condition is in controversy 2. Must show cause 2.Can only get a medical exam from a party or someone w/in that party’s control. (IE parent-child, but not employer-employee) v. Request for admission Rule 36 1. THESE CAN ONLY BE SENT TO PARTIES 2. Force you to admit or deny a ny discoverable matter (if you don’t deny- you admit) c. Scope of discovery i. You can discover anything that is relevant to a claim or a defense. You can discover anything that could reasonably lead admissible evidence ii. Privileged matter is not discoverable. Confidential communication in certain relationships iii. Work product- Rule 26 b 3- trial prep materials Hickman v Taylor 1.Material prepared in anticipation of litigation. Not discoverable. 2. Work product protection can be overcome if you can show: 1. Substantial need 2. Not otherwise available 3. Mental impressions, conclusions, opinions, and legal theories are never discoverable 4. DOES NOT HAVE TO BE GENERATED BY A LAWYER!!! Can be generated by a party themselves or a representative. IX. Pre Trial Adjudication a. Rule 12 b 6- Motion to dismiss for failure to state a claim i. Only looks at the complaint- determine if everything the ? said is true, would she win? If not, then no need to continue the matter for tria l. ii.Looks at complaint- complaint must show enough facts to support the claim. (IE all elements necessary for a tort, if one left out, grounds for 12 b 6). Courts usually allow pleadings to be amended b. Summary Judgment Rule 56 a- judge looks at facts/evidence i. Moving party must show 1. There is no genuine dispute on a material fact 2. She is entitled to judgment as a matter of law ii. This evidence is provided by parties to the judge. The information is written and given under oath. iii. The court takes the evidence and decides if there is a genuine dispute of material fact- if there is then there must be a trial to settle the dispute.X. Trial a. Right to Jury Trial- 7th amendment-Civil Cases i. Preserves the right to a jury in actions at law, not equity. ii. Depends on whether we would have had the right to a jury in England in 1791 1. Is this claim analogous to an action that was available in England in 1791 2. We focus on the remedy the ? is seeking 1. Remedy at law- damage s to compensate you for the harm suffered. Jury 2. Equity courts- No Jury i. Injunction ii. Specific performance iii. Rescission iv. Reformation 3. Historically, it was all or nothing for a jury, change in 1950. Now, we do it issue by issue.Every factual issue for legal relief- you get a jury, if the claim has both, you get a jury. Usually the jury issues are heard first. b. Motions- you don’t get to a jury until you present enough info to get to the jury i. Motion of Judgment as a matter of law- Directed verdict- Rule 50 a- if it is granted the case is taken from the jury and the judge decided 1. Rule 50 a 1- reasonable ppl could not disagree on the results, therefore the judge is going to rule. Must be done by motion. 2. Rule 50 a 2- cannot move for this until the other side has been heard at trial. ii.Renew motion for Judgment as a matter of law- Judgment notwithstanding the verdict- Rule 50 b- comes up after trial, after a return of the verdict by the jury. 1. If granted, the court is saying that the jury reached a conclusion that reasonable ppl could not have reached. 1. Must be moved for w/in 28 days after the judgment. 2. To make this motion, you have moved for this at the appropriate time at trial. If you didn’t, you waived the right to do this after trial. iii. Motion for New Trial 1. Timing the same as judgment notwithstanding the verdict, 28 days after entering the judgment. 2.Something went wrong in the first trial that affected the outcome and a redo is needed. No limit to the possibilities. 3. This can be granted w/o a motion. XI. Appeals a. The final judgment rule i. In federal court you cannot appeal until the trial court enters a final judgment on the merits of the entire case. 1. To determine if it is a final judgment- after making this order, does the trial court judge have anything left to do on the merits? 1. Interlocutory appeal- an appeal taken before final judgment is entered. b. Interlocutory Review i. Statutory 1.  §12 92 a- orders about injunctions 2. 1292 b-trial court and appellate court agree to review ii. FRCP 1. Rule 23 f- allows you to ask for an appeal following the certification of a class action class. 2. Rule 54 b- cases with multiple claims or parties, court may allow appeal iii. Collateral Order Rule- common law 1. Issue separate from the merits of the case. 2. Comes up in cases when the ? claims immunity from suit XII. Preclusion – always involves two cases a. Claim Preclusion/Res Judicata- you get one suit to vindicate a claim; you can only sue on a claim once. i. 3 elements for claim preclusion 1. Must show that both cases were brought by the same ? against the same ?. . Case one ended in a valid final judgment on the merits. 1. Rule 41 b- every judgment is a judgment on the merits unless it was based on jx, venue, joinder of parties. 3. Both cases are based on the same claim 1. Claim is the same transaction or occurrence- Majority View 2. Primary rights- you get a different claim for each right invaded- Minority View b. Issue Preclusion/ Collateral Estoppel – you only have to litigate issues in the 2nd trial that weren’t litigated in the first trial i. 5 elements 1. Case ended in a valid judgment on the merits 2. Have to show that same issue was litigated and decided in the first trial 3.Have to show that that issue was essential to the judgment in the first case. 4. Against whom is issue preclusion used. You can only you it against someone who was a party to the first trial. 5. By who is issue preclusion being used- Mutuality- issue preclusion can only be used if you were a party to the first trial. Most states have gone to allowing non-mutual issue preclusion- means it is being used by someone who is not a party to the first trial as long as there was the opportunity to fully litigate in the first trial. 1. Non-mutual defensive issue preclusion- being used by someone who was not a party to the first trial and she is the ? sing issue pr eclusion. 2. Non-mutual offensive issue preclusion- being used by someone who was not a party to the first trial and she is the ? using issue preclusion. Most courts say no to non-mutual offensive issue preclusion. In the federal courts it can be allowed if it is fair. Parklane Hosiery i. Did the party that issue preclusion is being used against have the chance to fully litigate the issue. ii. Foreseeable litigation iii. You could not have easily joined in the first trial. iv. No inconsistent judgments v. No new procedural options.

Buying behavior, TV advertisements, ethical and unethical.

â€Å"Advertising perception has a significant impact on consumers’ intention to reject the products and the brand† (Chan et al, 2007). The marketers around the world use different kinds of promotion techniques as a tool of conveying the message about their products or services to the target consumers. Marketers tend to believe that all consumers around the world have similar needs as well as desires and that the global market is growing increasingly homogeneous (Chan et al, 2007). Therefore they try to capture the market through advertising without considering what customers expect from the firms. Due to the rapid growth in the media, all most all firms use TV as their media of promotion to grasp the target market. The Sri Lankan structure of advertising industry is also affected by globalization. At present, there are number of private and government advertising companies inSri Lanka. The advertising companies are also affected by the local FMCG companies. Due to the arising completion, companies should involve in vast promotions in order to capture the market before their competitors. It is believed that there is a relationship between TV promotions and buying behavior of consumers. In order to identify what the customer expects from marketers, it’s vital to carry out a research on how ethical and unethical TV advertisements affect on consumer buying behavior in FMCG industry inSri Lanka? 1.2 PROBLEM STATEMENT How ethical and unethical TV advertisements affect on consumer buying behavior in FMCG industry in Sri Lanka 1.3 PROBLEM JUSTIFICATION The companies that are operating in the FMCG industry inSri Lankashould focus on increasing their sales through identifying their customer expectations. Today almost all the organization around the world, use TV advertisements as a way of conveying the message about their product to the target market. Therefore it is important for marketers to identify the consumer perception about ethical and unethical TV advertisements and its impact on the company sales. Most of the companies do not analyze their customer expectations before they telecast their advertisements on TV. This has created a contradictory situation in the society which may result in negative perceptions about the product which is promoted through the advertisement. R.C. Earnest (2007), who conducted a research on ethnically targeted advertising, has found that â€Å"there were negative attitudinal, emotional, and behavioral reactions by those who are not targeted, which may result in a drop of sales.† With the arising competition, it’s important for organizations to find out the ways and means of satisfying customers in order to make the existing customer retain with the company and attract new customers through vast promotions. The level of understanding of what local customer expect from the marketers when they are doing their promotions through television is, questionable. It is important for organizations to understand and examine the impact of TV advertisements on consumer buying behavior in order to be successful in the future. 1.4 OBJECTIVES To identify how consumers react to unethical and ethical TV advertisements done by FMCG industry inSri Lanka. To find out the impact on buying behavior of the consumers depending on the ethicality and unethicality of the TV advertisements. To find out the relationship between different types of advertisements and buying behavior To find out what type of advertisements attracts more customers towards the product. To recommend alterations to enhance the quality of suitable TV advertisements inSri Lanka. 1.5 SIGNIFICANCE OF THE STUDY Companies The buying behavior of the consumers would be analyzed with regard to the TV advertisements done by companies who are operating in the FMCG industry inSri Lanka. This study will enable the companies to understand their consumers and plan their future promotions in a way in which it will increase customers’ satisfaction. The study also emphasis on possible consequences that may arise in the long run if the company target only one ethnic or religious group in their advertisements. It will also enable the companies to get an idea about the effectiveness of using Indian and other foreign TV advertisements in Sri Lankan context. As this study enables to indentify customer’s perception of the ethical and unethical advertisements, the companies would be able to fulfill customer expectations by providing what customers perceive as ethical. It will create positive attitudes towards the product and the company, ensuring their sales would not drop as a result of an unethical advertisement. Consumers As the study focuses on customer perception regarding ethical and unethical advertisements, the customers will be able to watch TV advertisements without feeling uneasy and embarrassed and they wouldn’t become offended regarding controversial advertisements Further as the production of unethical advertisements diminishes due to the awareness created among the advertising firms through the study and the consumer would be able to grasp the exact message which the company wishes to deliver to the customers when the advertisement is devoid of unethical content. The study will provide an opportunity for the customers to express their views on ethical and unethical TV advertisements. Advertising firms As the study provides details regarding the factors that should be considered when producing TV advertisements for Sri Lankan audience, the advertisement firms will be benefited in terms of understanding the target audience and to be more responsible about the content of the advertisements. The study will specify on what is ethical and what is unethical in terms of customer perspective, which should be the main concern of the advertising firms. Through the provided recommendations the firms can improve the quality of their advertisements, meeting customer expectations which will enable them to serve the society better. 1.6 SCOPE AND THE LIMITATIONS OF THE STDY. Limitation associated with this study begins with the nature of sample, which are the working women in selected areas whose minimum educational level would be the completion of GCE (A/L) and the advertisements done by companies who are operating in the FMCG sector inSri Lankawithin the time period of 2007-2008. The above mentioned sample is selected based on following assumptions: As the society acceptance is more towards the working females, the data gathered through them would be more reliable. Minimum educational level is specified considering the fact that they are knowledgeable enough to distinguish what is ethical and unethical. Further the selected area would beColombomunicipal council and the time period is specified due to time limitation and ease of data gathering. The study is carried out considering only a group of customers which might cause biasness in the findings. Selection of TV as media of advertising and FMCG industry are limiting the study to one particular sector. CHAPTER 2 2.1LITERATURE â€Å"Ethics of advertising intends to ensure that advertisers and consumers co-exist without being harmed by the messages of advertisements.† Ethical advertising provides information regarding the product without harming any parties involved as well as people who watch.â€Å"Unethical advertising, by contrast, deceives consumers by concealing significant facts about a product or service.† Unethical do not satisfy the interests and expectations of the consumers (AcaDemon, 2008) 2.2 LITERATURE REVIEW Numbers of researches around the world have carried out research to find out if there exists a relationship between TV advertisements and the buying behavior. Implications for the Western World It is interesting to observe that TV advertisements have an impact on the Buying behaviors of the New Zealandcustomers. A group of researchers who carried out a research â€Å"to examine what influences perceptions of infomercial advertising effectiveness among a sample of actual infomercial buyers† (Martin et al, 2002), have found that the consumers included in the sample which was 2,670 customers who had bought one of six different products advertised within two weeks, has admitted that the infomercial advertisements (Appendix 1) had been effective in getting them to buy the product (Martin et al, 2002). Unlike most researchers, this group has identified a relationship between a demographic factor which is age and the buying behavior of the consumers. According to the findings of Martine et al, (2002) age impacted how consumers view infomercials, as did the product type purchased. Hypotheses Ho1 and Ha1 were developed according to the findings of this study. Barrio-Garcia Luque- Martinez (2003) who conducted a research inSpainhad focused on a different aspect of advertising. In contrast to the above mentioned group, this group has selected the comparative advertising in order to find out the relationship between TV advertisements and buying behavior of the consumers. The study was carried out on the objective of â€Å"to provide marketing professionals with a theoretical outline that will allow them to understand the persuasive mechanism that underlies comparative advertising effectiveness, helping them in their marketing decision-making processes† (Barrio-Garcia Luque- Martinez, 2003). Comparing to the above group, this group had identified a negative relationship between advertisements and buying behavior of the consumers. The findings of the study states that, â€Å"increase in comparative advertising intensity negatively affect towards the brands advertised and also purchase intensions† (Barrio-Garcia Luque- Martinez , 2003). In order to gather data, they have used relatively a small sample which consisted of 720 consumers selected from four geographical areas ofSpain. The finding of this study was utilized in order to develop Hypotheses Ho2 and Ha2. Petrovici Marinov (2007), two British researchers have also concentrated on how TV advertisements affect on buying behavior of the consumers. They have used a different approach to attempt the research objective which is â€Å"to explore the relationship between determinants and primary antecedents of advertising and attitudes to advertising in the context of European Union accession countries† (Petrovici Marinov, 2007). Even though the sample selected was small (797 respondents) comparing to New Zealand researches (sample of 2,670 respondents), this group has selected their sample from two different countries (Romania and Bulgaria) which helps to broaden their study further and their findings are more reliable as they have conducted face-to-face interviews with the respondents. It is proved that brand recognition and acquisition can be achieved through realistic, truthful and fair advertising (Petrovici Marinov, 2007). Hypotheses Ho3, Ha3 and Ho4, Ha4 were developed in rel ation to the findings of this study. Romani (2006) who conducted the research inItalyhas used different types of variables compared to other western researches to test the relationship between TV advertisements and buying behavior. The variables used in this study were, willingness to buy the advertised product, trustworthiness towards the source of information and completeness or clarity of price information contained in the advertisement. The researcher has used qualitative and experimental studies in order to identify the misleading price communication strategies and consumer response to those advertisements. The respondents sample were very small (480) compared to above mentioned studies which is a drawback of the study. The conclusions drawn from the study show that there is a negative relationship between price misleading advertisements and the customer’s willingness to buy and there is a positive relationship between trustworthiness towards the source of information. The objective of the study was to †Å"investigate consumers’ reactions to advertisements containing misleading information on price† (Romani, 2006). Development of hypotheses Ho5, Ha5 and Ho6, Ha6 were based on the findings of this study. Implications for Asian countries According to R.C. Earnest (2007), â€Å"Unintended audiences often view advertisements targeted at other groups and make decisions regarding the advertisement, brand and company behind the advertising which affect future consumer behavior†. The objective of the study was â€Å"to extend current knowledge on advertising effects on those not targeted by noting unintended consequences on attitudinal, emotional and behavioral reactions† R.C. Earnest (2007). A similar type of sample which Petrovici Marinov (2007), used in their study was utilized in order to gather data. Instead of selecting the sample from two countries, R.C. Earnest (2007) has selected the sample from two distinct ethnic groups (Malay and Chinese) inKuala Lumpur,Malaysia. A fair number of respondents (200 Chinese and 199 Malays) were selected from each group and data were gathered by means of a questionnaire which was based on fiction advertisements targeted at dominant and non- dominant ethnic groups inM alaysia. Hypotheses Ho7 and Ha7 were developed on the basis of findings of this study. Chan McNeal (2003) have concentrated on an atypical aspect of how TV advertisements influence on buying behavior of the consumers. They have emphasized on parent- child communications about consumption and advertising which distinguish their study from the others. Comparatively a large sample (1,665) of parents with children aged 6 to 14 were selected from 3 cities inChinaand a questionnaire is being distributed in order to gather data. Out of all the findings of their study most relevant finding to the current study is that, pluralistic and consensual parents take their children’s opinions about advertisements in to consideration when consuming certain products. Implications for neighbor country A study conducted by Fam Grosh (2007) has derived an interesting finding from the data they gathered using 1,000 urban young adults. Even the sample selected was relatively low compared to theMartin et al’s, (2002) study, the sample was drawn from five Asian countries includingIndia. The method that they have used to gather data was telephone interviews which distinguish this study from the above mentioned studies. The respondents were questioned on their thoughts about the TV advertisements that they liked, product that was being advertised and purchase intensions. The objective of the study was â€Å"to examine likeable executional techniques in advertising across five Asian countries and their impact on purchase intension† (Fam Grosh, 2007). The researchers found that unlike in the all other four countries India is the only country where the respondents’ react for the likeable executional tools and likeable attributes such as soft sell and relevant to me, ha s positively affected the respondents’ decision to buy more of a product/ brand after they exposure to the advertisement (Fam Grosh, 2007). Further most interesting finding of the study is that unlike in other countries Indian customers have responded negatively to advertisements in which children misbehave. Hypotheses Ho8 and 8were constructed with relevant to the findings of this study. Above discussed literature illustrates that advertisements have a significant impact on consumer buying behavior. CHAPTER 3 3.1 CONCEPTUAL FRAMEWORK The following variables are derived from the literature provided in chapter 2. Independent Variables Dependent Variables 3.2 HYPOTHESES Ho1: There is no relationship between infomercial advertisements and buying behavior. Ha1: There is a relationship between infomercial advertisements and buying behavior. Ho2: There is no relationship between Comparative Advertisements and buying behavior. Ha2: There is a relationship between Comparative Advertisements and buying behavior. Ho3: There is no relationship between Realistic Advertisements and buying behavior. Ha3: There is a relationship between Realistic Advertisements and buying behavior. Ho4: There is a negative relationship between Truthfulness of the information provided and thebuying behavior. Ha4: There is a positive relationship between Truthfulness of the information provided and thebuying behavior. H05: There is no relationship between Trustworthiness of the source and buying behavior. Ha5: There is a relationship between Trustworthiness of the source and buying behavior. Ho6: There is no relationship between Price misleading advertisements and buying behavior. Ha6: There is a relationship between Price misleading advertisements and buying behavior Ho7: There is a negative relationship between ethnically targeted advertisements and buying behavior. Ha7: There is a positive relationship between ethnically targeted advertisements and buying behavior. Ho8: There is a negative relationship between Children misbehaved advertisements and buying behavior. Ha8: There is a positive relationship between Children misbehaved advertisements and buying behavior. 3.3 METHODOLOGY Population, sampling and statistical approach will be discussed under this topic. 3.4 POPULATION AND SAMPLE. Selected population for in order to gather data is working women inColombodistrict with a minimum education level of G.C.E (A/L). Below diagram elaborates the selection of sample. The sampling method adapted is a proportionate probability area sampling technique. Where the selected sample of individuals was chosen based on their geographical location (Colombo District) and were further chosen based on if they were employed and had completed the G.C.E (A/L). Since the sample is larger than 35, hence, this can be categorized as a parametric test. Note: – 16.7% is the whole Female, employed and above G.C.E (A/L) rate 19,886,000 is the whole Sri Lankan population 2,421,000 is the wholeColombodistrict population 647,100 is the whole population ofColombomunicipal council 210,546 is the whole population of Dehiwala municipal council 117,563 is the whole population of Moratuwa municipal council 116366 is the whole population of Sri Jayewardenepura municipal council 3.5 STATISTICAL APPROCH According to the table provided in the Appendix 1, multiple regression analysis should be used to analyze data. Further Martine et al. (2002) also have used the multiple regression method to analyze data in their study. In order to gather data five point Likert scale would be adapted as previous researches, Chan McNeal (2003) and Martin et al (2002) have also used the same scale to gather data. CHAPTER 4 4.1 CONCLUSION The proposed study analyzes the impact of ethical and unethical TV advertisements on buying behavior of the consumers in FMCG industry inSri Lanka. Further the study analyses the relationship of how different types of TV advertisements affect on the buying behavior of the consumers using a sample of 104 working women inColombodistrict who have completed A/L examination. Literature review of the current study provides sufficient evidence of past researches which have discussed the similar relationships between the variables selected. Further the study enables the marketers to understand the customer well and as a result they will be able to fulfill consumer expectations through their advertisements. References Chan et al. 2007, ‘Consumers response to offensive advertising: a cross cultural study’, International Marketing Review, vol.24, no.5, pp.606-628. R.C. Earnest 2007, ‘Ethnically targeted advertising views of those not targeted’, Asia Pacific Journal of Marketing, vol.19, no.3, pp.265-285. Martin et al. 2002, ‘Infomercials and advertising effectiveness: an empirical study’, Journal of consumer marketing, vol.19, no.6, pp.468-480. Barrio-Garcia Luque- Martinez 2003, ‘Modeling consumer response to differing levels of comparative advertising’, European Journal of Marketing, vol.37, no.1/2, pp.256-274. Petrovici Marinov 2007, ‘Determinants and antecedents of general attitudes towards advertising’, European Journal of Marketing, vol.41, no.3/4, pp.307-326. Romani 2006, ‘Price misleading advertising: effects on trustworthiness toward the source of information and willingness to buy’, Journal of product and brand management, vol.15, no.2, pp.130-138. Chan McNeal 2003, ‘Parent-child communications about consumption and advertising in China’, Journal of consumer marketing, vol.20, no.4, pp.317-334. Fam Grosh 2007, ‘Cultural values and effective executional techniques in advertising’, International Marketing Review, vol.24, no.5, pp.519-638. City population 2008, Sri Lanka , [Online], Available: http://www.citypopulation.de/SriLanka.html [Accessed 3rd December 2008] Department of Census statistics 2006, Bulletin of Labor Force Statistics, [Online], Available: http://www.statistics.gov.lk/samplesurvey/labourforce/mainpage.pdf [Accessed 3rd December 2008] AcaDemon 2008, ‘Papers on Ethical Advertising and similar term paper topics’, [Online], Available: http://www.academon.com/lib/paper/31480.html [Accessed 10th December 2008] Appendix (Statistical Approach) INDEPENDENT VARIABLE DATA TYPEDEPENDENT VARIABLE DATA TYPE:Buying behaviorSELECTED STATISTICAL METHOD INDEPENDENT VARIABLE 1:Infomercial advertisementsIntervalInterval Multiple Regression INDEPENDENT VARIABLE2:Comparative advertisementsInterval IntervalMultiple Regression INDEPENDENT VARIABLE3:Realistic advertisements IntervalIntervalMultiple Regression INDEPENDENT VARIABLE4:Truthfulness of the information providedIntervalIntervalMultiple Regression INDEPENDENT VARIABLE 5:Trustworthiness of the source IntervalIntervalMultiple Regression INDEPENDENT VARIABLE 6:Price misleading advertisements. IntervalIntervalMultiple Regression INDEPENDENT VARIABLE 7: Ethnically targeted advertisements IntervalIntervalMultiple Regression INDEPENDENT VARIABLE 8: Children’s misbehave advertisements IntervalIntervalMultiple Regression Appendix 2 (Operationalisation) Types of variables Measurement Questions/ Description Type of Data Independent Variables Infomercial advertisementsLikert ScaleI feel that infomercial advertisements make me buy the product compared to other advertisements.Interval Comparative advertisementsLikert ScaleComparative advertisements annoy meInterval Realistic AdvertisementsLikert ScaleI feel that realistic advertisements convince me more to buy the advertised product.Interval Truthfulness of the information provided in the advertisementsLikert ScaleI tend to purchase the product if the advertised information is trustworthy.Interval Trustworthiness of the sourceLikert ScaleI believe that TV advertisements are more reliable than other sources.Interval Price misleading advertisementsLikert ScalePrice misleading advertisements makes me reconsider when buying the relevant product.Interval Ethnically target advertisementsLikert ScaleAdvertisements targeting an ethnic group discourage me to purchase the product.Interval Children misbehave in advertisementsLikert ScaleI reject buying products that are advertised using children’s misbehaviour.Interval Dependant Variable Buying BehaviourLikert ScaleTelevision advertisements encourage me to buy the relevant products.Interval Buying behavior, TV advertisements, ethical and unethical. â€Å"Advertising perception has a significant impact on consumers’ intention to reject the products and the brand† (Chan et al, 2007). The marketers around the world use different kinds of promotion techniques as a tool of conveying the message about their products or services to the target consumers. Marketers tend to believe that all consumers around the world have similar needs as well as desires and that the global market is growing increasingly homogeneous (Chan et al, 2007). Therefore they try to capture the market through advertising without considering what customers expect from the firms. Due to the rapid growth in the media, all most all firms use TV as their media of promotion to grasp the target market. The Sri Lankan structure of advertising industry is also affected by globalization. At present, there are number of private and government advertising companies inSri Lanka. The advertising companies are also affected by the local FMCG companies. Due to the arising completion, companies should involve in vast promotions in order to capture the market before their competitors. It is believed that there is a relationship between TV promotions and buying behavior of consumers. In order to identify what the customer expects from marketers, it’s vital to carry out a research on how ethical and unethical TV advertisements affect on consumer buying behavior in FMCG industry inSri Lanka? 1.2 PROBLEM STATEMENT How ethical and unethical TV advertisements affect on consumer buying behavior in FMCG industry in Sri Lanka 1.3 PROBLEM JUSTIFICATION The companies that are operating in the FMCG industry inSri Lankashould focus on increasing their sales through identifying their customer expectations. Today almost all the organization around the world, use TV advertisements as a way of conveying the message about their product to the target market. Therefore it is important for marketers to identify the consumer perception about ethical and unethical TV advertisements and its impact on the company sales. Most of the companies do not analyze their customer expectations before they telecast their advertisements on TV. This has created a contradictory situation in the society which may result in negative perceptions about the product which is promoted through the advertisement. R.C. Earnest (2007), who conducted a research on ethnically targeted advertising, has found that â€Å"there were negative attitudinal, emotional, and behavioral reactions by those who are not targeted, which may result in a drop of sales.† With the arising competition, it’s important for organizations to find out the ways and means of satisfying customers in order to make the existing customer retain with the company and attract new customers through vast promotions. The level of understanding of what local customer expect from the marketers when they are doing their promotions through television is, questionable. It is important for organizations to understand and examine the impact of TV advertisements on consumer buying behavior in order to be successful in the future. 1.4 OBJECTIVES To identify how consumers react to unethical and ethical TV advertisements done by FMCG industry inSri Lanka. To find out the impact on buying behavior of the consumers depending on the ethicality and unethicality of the TV advertisements. To find out the relationship between different types of advertisements and buying behavior To find out what type of advertisements attracts more customers towards the product. To recommend alterations to enhance the quality of suitable TV advertisements inSri Lanka. 1.5 SIGNIFICANCE OF THE STUDY Companies The buying behavior of the consumers would be analyzed with regard to the TV advertisements done by companies who are operating in the FMCG industry inSri Lanka. This study will enable the companies to understand their consumers and plan their future promotions in a way in which it will increase customers’ satisfaction. The study also emphasis on possible consequences that may arise in the long run if the company target only one ethnic or religious group in their advertisements. It will also enable the companies to get an idea about the effectiveness of using Indian and other foreign TV advertisements in Sri Lankan context. As this study enables to indentify customer’s perception of the ethical and unethical advertisements, the companies would be able to fulfill customer expectations by providing what customers perceive as ethical. It will create positive attitudes towards the product and the company, ensuring their sales would not drop as a result of an unethical advertisement. Consumers As the study focuses on customer perception regarding ethical and unethical advertisements, the customers will be able to watch TV advertisements without feeling uneasy and embarrassed and they wouldn’t become offended regarding controversial advertisements Further as the production of unethical advertisements diminishes due to the awareness created among the advertising firms through the study and the consumer would be able to grasp the exact message which the company wishes to deliver to the customers when the advertisement is devoid of unethical content. The study will provide an opportunity for the customers to express their views on ethical and unethical TV advertisements. Advertising firms As the study provides details regarding the factors that should be considered when producing TV advertisements for Sri Lankan audience, the advertisement firms will be benefited in terms of understanding the target audience and to be more responsible about the content of the advertisements. The study will specify on what is ethical and what is unethical in terms of customer perspective, which should be the main concern of the advertising firms. Through the provided recommendations the firms can improve the quality of their advertisements, meeting customer expectations which will enable them to serve the society better. 1.6 SCOPE AND THE LIMITATIONS OF THE STDY. Limitation associated with this study begins with the nature of sample, which are the working women in selected areas whose minimum educational level would be the completion of GCE (A/L) and the advertisements done by companies who are operating in the FMCG sector inSri Lankawithin the time period of 2007-2008. The above mentioned sample is selected based on following assumptions: As the society acceptance is more towards the working females, the data gathered through them would be more reliable. Minimum educational level is specified considering the fact that they are knowledgeable enough to distinguish what is ethical and unethical. Further the selected area would beColombomunicipal council and the time period is specified due to time limitation and ease of data gathering. The study is carried out considering only a group of customers which might cause biasness in the findings. Selection of TV as media of advertising and FMCG industry are limiting the study to one particular sector. CHAPTER 2 2.1LITERATURE â€Å"Ethics of advertising intends to ensure that advertisers and consumers co-exist without being harmed by the messages of advertisements.† Ethical advertising provides information regarding the product without harming any parties involved as well as people who watch.â€Å"Unethical advertising, by contrast, deceives consumers by concealing significant facts about a product or service.† Unethical do not satisfy the interests and expectations of the consumers (AcaDemon, 2008) 2.2 LITERATURE REVIEW Numbers of researches around the world have carried out research to find out if there exists a relationship between TV advertisements and the buying behavior. Implications for the Western World It is interesting to observe that TV advertisements have an impact on the Buying behaviors of the New Zealandcustomers. A group of researchers who carried out a research â€Å"to examine what influences perceptions of infomercial advertising effectiveness among a sample of actual infomercial buyers† (Martin et al, 2002), have found that the consumers included in the sample which was 2,670 customers who had bought one of six different products advertised within two weeks, has admitted that the infomercial advertisements (Appendix 1) had been effective in getting them to buy the product (Martin et al, 2002). Unlike most researchers, this group has identified a relationship between a demographic factor which is age and the buying behavior of the consumers. According to the findings of Martine et al, (2002) age impacted how consumers view infomercials, as did the product type purchased. Hypotheses Ho1 and Ha1 were developed according to the findings of this study. Barrio-Garcia Luque- Martinez (2003) who conducted a research inSpainhad focused on a different aspect of advertising. In contrast to the above mentioned group, this group has selected the comparative advertising in order to find out the relationship between TV advertisements and buying behavior of the consumers. The study was carried out on the objective of â€Å"to provide marketing professionals with a theoretical outline that will allow them to understand the persuasive mechanism that underlies comparative advertising effectiveness, helping them in their marketing decision-making processes† (Barrio-Garcia Luque- Martinez, 2003). Comparing to the above group, this group had identified a negative relationship between advertisements and buying behavior of the consumers. The findings of the study states that, â€Å"increase in comparative advertising intensity negatively affect towards the brands advertised and also purchase intensions† (Barrio-Garcia Luque- Martinez , 2003). In order to gather data, they have used relatively a small sample which consisted of 720 consumers selected from four geographical areas ofSpain. The finding of this study was utilized in order to develop Hypotheses Ho2 and Ha2. Petrovici Marinov (2007), two British researchers have also concentrated on how TV advertisements affect on buying behavior of the consumers. They have used a different approach to attempt the research objective which is â€Å"to explore the relationship between determinants and primary antecedents of advertising and attitudes to advertising in the context of European Union accession countries† (Petrovici Marinov, 2007). Even though the sample selected was small (797 respondents) comparing to New Zealand researches (sample of 2,670 respondents), this group has selected their sample from two different countries (Romania and Bulgaria) which helps to broaden their study further and their findings are more reliable as they have conducted face-to-face interviews with the respondents. It is proved that brand recognition and acquisition can be achieved through realistic, truthful and fair advertising (Petrovici Marinov, 2007). Hypotheses Ho3, Ha3 and Ho4, Ha4 were developed in rel ation to the findings of this study. Romani (2006) who conducted the research inItalyhas used different types of variables compared to other western researches to test the relationship between TV advertisements and buying behavior. The variables used in this study were, willingness to buy the advertised product, trustworthiness towards the source of information and completeness or clarity of price information contained in the advertisement. The researcher has used qualitative and experimental studies in order to identify the misleading price communication strategies and consumer response to those advertisements. The respondents sample were very small (480) compared to above mentioned studies which is a drawback of the study. The conclusions drawn from the study show that there is a negative relationship between price misleading advertisements and the customer’s willingness to buy and there is a positive relationship between trustworthiness towards the source of information. The objective of the study was to †Å"investigate consumers’ reactions to advertisements containing misleading information on price† (Romani, 2006). Development of hypotheses Ho5, Ha5 and Ho6, Ha6 were based on the findings of this study. Implications for Asian countries According to R.C. Earnest (2007), â€Å"Unintended audiences often view advertisements targeted at other groups and make decisions regarding the advertisement, brand and company behind the advertising which affect future consumer behavior†. The objective of the study was â€Å"to extend current knowledge on advertising effects on those not targeted by noting unintended consequences on attitudinal, emotional and behavioral reactions† R.C. Earnest (2007). A similar type of sample which Petrovici Marinov (2007), used in their study was utilized in order to gather data. Instead of selecting the sample from two countries, R.C. Earnest (2007) has selected the sample from two distinct ethnic groups (Malay and Chinese) inKuala Lumpur,Malaysia. A fair number of respondents (200 Chinese and 199 Malays) were selected from each group and data were gathered by means of a questionnaire which was based on fiction advertisements targeted at dominant and non- dominant ethnic groups inM alaysia. Hypotheses Ho7 and Ha7 were developed on the basis of findings of this study. Chan McNeal (2003) have concentrated on an atypical aspect of how TV advertisements influence on buying behavior of the consumers. They have emphasized on parent- child communications about consumption and advertising which distinguish their study from the others. Comparatively a large sample (1,665) of parents with children aged 6 to 14 were selected from 3 cities inChinaand a questionnaire is being distributed in order to gather data. Out of all the findings of their study most relevant finding to the current study is that, pluralistic and consensual parents take their children’s opinions about advertisements in to consideration when consuming certain products. Implications for neighbor country A study conducted by Fam Grosh (2007) has derived an interesting finding from the data they gathered using 1,000 urban young adults. Even the sample selected was relatively low compared to theMartin et al’s, (2002) study, the sample was drawn from five Asian countries includingIndia. The method that they have used to gather data was telephone interviews which distinguish this study from the above mentioned studies. The respondents were questioned on their thoughts about the TV advertisements that they liked, product that was being advertised and purchase intensions. The objective of the study was â€Å"to examine likeable executional techniques in advertising across five Asian countries and their impact on purchase intension† (Fam Grosh, 2007). The researchers found that unlike in the all other four countries India is the only country where the respondents’ react for the likeable executional tools and likeable attributes such as soft sell and relevant to me, ha s positively affected the respondents’ decision to buy more of a product/ brand after they exposure to the advertisement (Fam Grosh, 2007). Further most interesting finding of the study is that unlike in other countries Indian customers have responded negatively to advertisements in which children misbehave. Hypotheses Ho8 and 8were constructed with relevant to the findings of this study. Above discussed literature illustrates that advertisements have a significant impact on consumer buying behavior. CHAPTER 3 3.1 CONCEPTUAL FRAMEWORK The following variables are derived from the literature provided in chapter 2. Independent Variables Dependent Variables 3.2 HYPOTHESES Ho1: There is no relationship between infomercial advertisements and buying behavior. Ha1: There is a relationship between infomercial advertisements and buying behavior. Ho2: There is no relationship between Comparative Advertisements and buying behavior. Ha2: There is a relationship between Comparative Advertisements and buying behavior. Ho3: There is no relationship between Realistic Advertisements and buying behavior. Ha3: There is a relationship between Realistic Advertisements and buying behavior. Ho4: There is a negative relationship between Truthfulness of the information provided and thebuying behavior. Ha4: There is a positive relationship between Truthfulness of the information provided and thebuying behavior. H05: There is no relationship between Trustworthiness of the source and buying behavior. Ha5: There is a relationship between Trustworthiness of the source and buying behavior. Ho6: There is no relationship between Price misleading advertisements and buying behavior. Ha6: There is a relationship between Price misleading advertisements and buying behavior Ho7: There is a negative relationship between ethnically targeted advertisements and buying behavior. Ha7: There is a positive relationship between ethnically targeted advertisements and buying behavior. Ho8: There is a negative relationship between Children misbehaved advertisements and buying behavior. Ha8: There is a positive relationship between Children misbehaved advertisements and buying behavior. 3.3 METHODOLOGY Population, sampling and statistical approach will be discussed under this topic. 3.4 POPULATION AND SAMPLE. Selected population for in order to gather data is working women inColombodistrict with a minimum education level of G.C.E (A/L). Below diagram elaborates the selection of sample. The sampling method adapted is a proportionate probability area sampling technique. Where the selected sample of individuals was chosen based on their geographical location (Colombo District) and were further chosen based on if they were employed and had completed the G.C.E (A/L). Since the sample is larger than 35, hence, this can be categorized as a parametric test. Note: – 16.7% is the whole Female, employed and above G.C.E (A/L) rate 19,886,000 is the whole Sri Lankan population 2,421,000 is the wholeColombodistrict population 647,100 is the whole population ofColombomunicipal council 210,546 is the whole population of Dehiwala municipal council 117,563 is the whole population of Moratuwa municipal council 116366 is the whole population of Sri Jayewardenepura municipal council 3.5 STATISTICAL APPROCH According to the table provided in the Appendix 1, multiple regression analysis should be used to analyze data. Further Martine et al. (2002) also have used the multiple regression method to analyze data in their study. In order to gather data five point Likert scale would be adapted as previous researches, Chan McNeal (2003) and Martin et al (2002) have also used the same scale to gather data. CHAPTER 4 4.1 CONCLUSION The proposed study analyzes the impact of ethical and unethical TV advertisements on buying behavior of the consumers in FMCG industry inSri Lanka. Further the study analyses the relationship of how different types of TV advertisements affect on the buying behavior of the consumers using a sample of 104 working women inColombodistrict who have completed A/L examination. Literature review of the current study provides sufficient evidence of past researches which have discussed the similar relationships between the variables selected. Further the study enables the marketers to understand the customer well and as a result they will be able to fulfill consumer expectations through their advertisements. References Chan et al. 2007, ‘Consumers response to offensive advertising: a cross cultural study’, International Marketing Review, vol.24, no.5, pp.606-628. R.C. Earnest 2007, ‘Ethnically targeted advertising views of those not targeted’, Asia Pacific Journal of Marketing, vol.19, no.3, pp.265-285. Martin et al. 2002, ‘Infomercials and advertising effectiveness: an empirical study’, Journal of consumer marketing, vol.19, no.6, pp.468-480. Barrio-Garcia Luque- Martinez 2003, ‘Modeling consumer response to differing levels of comparative advertising’, European Journal of Marketing, vol.37, no.1/2, pp.256-274. Petrovici Marinov 2007, ‘Determinants and antecedents of general attitudes towards advertising’, European Journal of Marketing, vol.41, no.3/4, pp.307-326. Romani 2006, ‘Price misleading advertising: effects on trustworthiness toward the source of information and willingness to buy’, Journal of product and brand management, vol.15, no.2, pp.130-138. Chan McNeal 2003, ‘Parent-child communications about consumption and advertising in China’, Journal of consumer marketing, vol.20, no.4, pp.317-334. Fam Grosh 2007, ‘Cultural values and effective executional techniques in advertising’, International Marketing Review, vol.24, no.5, pp.519-638. City population 2008, Sri Lanka , [Online], Available: http://www.citypopulation.de/SriLanka.html [Accessed 3rd December 2008] Department of Census statistics 2006, Bulletin of Labor Force Statistics, [Online], Available: http://www.statistics.gov.lk/samplesurvey/labourforce/mainpage.pdf [Accessed 3rd December 2008] AcaDemon 2008, ‘Papers on Ethical Advertising and similar term paper topics’, [Online], Available: http://www.academon.com/lib/paper/31480.html [Accessed 10th December 2008] Appendix (Statistical Approach) INDEPENDENT VARIABLE DATA TYPEDEPENDENT VARIABLE DATA TYPE:Buying behaviorSELECTED STATISTICAL METHOD INDEPENDENT VARIABLE 1:Infomercial advertisementsIntervalInterval Multiple Regression INDEPENDENT VARIABLE2:Comparative advertisementsInterval IntervalMultiple Regression INDEPENDENT VARIABLE3:Realistic advertisements IntervalIntervalMultiple Regression INDEPENDENT VARIABLE4:Truthfulness of the information providedIntervalIntervalMultiple Regression INDEPENDENT VARIABLE 5:Trustworthiness of the source IntervalIntervalMultiple Regression INDEPENDENT VARIABLE 6:Price misleading advertisements. IntervalIntervalMultiple Regression INDEPENDENT VARIABLE 7: Ethnically targeted advertisements IntervalIntervalMultiple Regression INDEPENDENT VARIABLE 8: Children’s misbehave advertisements IntervalIntervalMultiple Regression Appendix 2 (Operationalisation) Types of variables Measurement Questions/ Description Type of Data Independent Variables Infomercial advertisementsLikert ScaleI feel that infomercial advertisements make me buy the product compared to other advertisements.Interval Comparative advertisementsLikert ScaleComparative advertisements annoy meInterval Realistic AdvertisementsLikert ScaleI feel that realistic advertisements convince me more to buy the advertised product.Interval Truthfulness of the information provided in the advertisementsLikert ScaleI tend to purchase the product if the advertised information is trustworthy.Interval Trustworthiness of the sourceLikert ScaleI believe that TV advertisements are more reliable than other sources.Interval Price misleading advertisementsLikert ScalePrice misleading advertisements makes me reconsider when buying the relevant product.Interval Ethnically target advertisementsLikert ScaleAdvertisements targeting an ethnic group discourage me to purchase the product.Interval Children misbehave in advertisementsLikert ScaleI reject buying products that are advertised using children’s misbehaviour.Interval Dependant Variable Buying BehaviourLikert ScaleTelevision advertisements encourage me to buy the relevant products.Interval

No Child Left Behind Research Paper Example | Topics and Well Written Essays - 2250 words

No Child Left Behind - Research Paper Example †¢ Teachers are either inadequately skilled or lack the motivation to inspire students to higher levels of learning. †¢ Local communities, school board members, and superintendents do not know what their students should be learning or to what degree they should be learning it. †¢ Accountability through testing will pressure the system to improve. (Ramirez: 205) Thus, the No Child Left Behind Act (NCLB) was signed into law in January, 2002 to replace the 1965 Elementary and Secondary Education Act (ESEA). The NCLB upholds four main principles that envisions the following outcomes: (1) stronger accountability for student academic performance, i.e., tougher state standards for students; (2) increased flexibility and local control over school operations i.e., flexibility in the way states spend federal dollars; (3) expanded school choice options for parents, i.e., parental choice in those schools labeled as ‘chronically’ failing schools; and (4) an emphasis on effective teaching methods, i.e., focusing resources in proven ‘research-based’ approaches (Gibbons and Paige as cited in Gardiner, Canfield-Davis & Anderson: 143). In an effort to raise the standard of education in the United States, the NCLB required public schools to test all third and eighth-grade students annually in Reading and Mathematics and to sort test results by race, socioeconomic status, disability and English proficiency. This is to identify where achievement gaps are prevalent. NCLB targets the end of the 2013-2014 schoolyear to have all students become proficient in both Reading and Math (Ravitch: 5). Consequences for schools that do not show progress towards NCLB’s goals of 100% proficiency in all groups identified (racial, economic, ability and English proficiency groups) are stringent. If the school continues to fail to make its â€Å"adequate yearly progress† (AYP) for any group, their students are given an option to either leave the s chool or enroll elsewhere. On its third year of failure, the students are entitled to free tutorial sessions after school hours. If in the following years, the school still continues to fare poorly, then government may convert it into one run by private management or turn the school into a chartered school, dismissing all its staff and turning it over to the state (Ravitch: 5). Thus far, NCLB has provided disappointing results, earning the criticism of many. In 2009, Ravitch reports that the latest release of scores from the National Assessment of Educational Progress (NAEP) showed no evidence of the effectiveness of NCLB because no significant improvement was noticed in the scores. Achievement gaps between groups of students were still maintained. U.S. students scored well behind their international counterparts in Asian countries. Math and Science scores improved since these were the subjects emphasized by the curriculum in preparation for the national tests, however, Science scor es lagged behind. This proves that since NCLB only considered Math and English as the basic subjects that students needed to be proficient in, it has neglected to give attention to non-tested subjects such as Science, History, Civics, the Arts and geography (Ravitch:5) Achievement gaps still persist notwithstanding NCLB’s mandate to upgrade educational standards for all students. Finkel (n.pag) analyses why Black students still get left behind their white peers in achievement rates, blaming it on hostile and alienating environments.

Theory of Justice Analysis Essay Example | Topics and Well Written Essays - 1000 words

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Impacts of MIS on Aramex Assignment Example | Topics and Well Written Essays - 2000 words - 1

Impacts of MIS on Aramex - Assignment Example As the discussion stresses  the managers will have to train and educate the employees on the various impacts MIS has on the entire organization’s operations, especially if they are to achieve competitive advantage. For Aramex, the way they implement their MIS will determine whether IT will drive their business or whether it will become a function to be absorbed by business lines as their managers become more versed with the systems. For this reason, this paper will seek to determine the impact of MIS on Aramex’s decision-making, organizational structure, data security, as well as the impact that future trends are likely to have on Aramex’s strategy.  This paper highlights that  Aramex has an abundance of data at their disposal that they can draw on when making decisions. Aramex can use many tools in the analysis of data to improve on their decision-making. According to Mr. Iyad Kamal, Aramex COO, they use the Performance Planning Value Chain to enhance thei r decision making. Through this, they are able to bring a vast collection of analytical tools to focus efforts and extract data value in adding value to the organization.  MIS aids in the process of value extraction from data, such as the development of a hypothesis, data gathering, data analysis, data interpretation, communication of insights, and making decisions that are informed to take action.  At Aramex, their MIS framework compares to the Plan Do Check Act cycle, which is an almost modern quality control.

Research Essay Example | Topics and Well Written Essays - 1250 words - 1

Research - Essay Example He also feels this especially towards Biff who he thinks was doing particularly well until he went on to campus and failed his mathematics and thus never finished it. The psychological context is also brought out by the fact that Willy’s family and friends feel that he is losing his sanity (Miller 15). Happy and Biff discuss the mental degradation of their father but do not bring this out to him since they feel that he would not accept what they are telling him, his wife Linda is also aware of his mental problems but won’t tell him either because she is trying to unite the family which already appears on the verge of splitting up. Willy’s problems do however show themselves when he gets into an argument with his boss Howard over the rejection of his application for a town job. Willy loses his temper over a trivial matter showing his volatility and the dangers of depression. Willy’s spiral into depression is also shown by his constant hallucinations. He con stantly hallucinates of his past years of success such as 1928 when he was driving a red Chevrolet (Miller 13) of having conversations with his older brother as well point to his dementia. The constant hallucinations are thought to be a defense mechanism for the harsh realities that he is facing and were to prevent the onset of full scale depression, this however is not avoided as at the end of the play he still succumbs to it and commits suicide. Several factors are responsible for this depression the most important being his denial of the reality that he is not as successful as he imagines himself to be, and that Biff was never the successful football player that he imagines himself to be The success that Biff had was instead a touchdown that he scored while in high school. Willy’s imagination of success is shown when he goes to confront Howard’s father about his sacking citing the time in 1928 when he earned an extremely large bonus, he defends himself towards his b oss by citing the time twenty years ago when he found financial success and this is what he uses as his defense to have himself reinstatedâ€Å". The play is set in 1949 showing that Willy’s peak are twenty years past and yet he still clings on to them to prevent his acknowledgement that he is not as successful as he dreams(Miller 82). The theme of unrealistic parental expectations is constantly shown in Willy who believes that his son Biff is a failure, he wants his son to take up a job as a salesman and constantly berates him for not, he keeps reminding him about his high school successes and clings on them as proof that Biff has potential. He also keeps pressuring Bill to marry as he says that he was popular with everybody both boys and girls but as Linda points out Biff is rough with women and so it is difficult for him to settle down (Miller 31). The relationship between Linda and Happy also show how her expectations of him are more than what he can be even when trying, she complains that Happy should be doing more with his life and yet Happy is constantly providing money for her and Willy to use to supplement his income. Happy also has motivation to succeed and wants to become the manager of his store however