Of Romeo and Juliet

anfernee simon According to Duff Brenna, â€Å"All literature shows us the power of emotion. It is emotion, not reason, which motivates characters in literature. † This is demonstrated in The Tragedy of Romeo and Juliet and Of Mice and Men. Human beings are often driven by their emotions or passions. Sometimes their actions defy sound reason or judgment. However, due to the emotions that the individuals might be experiencing at that time, their initial response is usually impulsive.I agree Duff Brenna in her assessment of how characters in literature are motivated by their raging emotions and not by reason, common sense or wisdom. One cannot merely act upon how they feel, especially if those emotions are negatives. Negatives emotions, if acted upon, will lead to negative actions; whereas positive emotions will leads to positive actions. In the play, Romeo and Juliet, The Capulet’s and The Montegue’s hated each other’s families. The literary term I used to best describe the story is irony.The irony in the story was that the two families were feuding and the two cross lovers fell in love. The main character in the story that relates to my interpretation of the quote by Brenna is Romeo. Romeo was a teenaged Capulet. He was tall with dark brown eyes. Romeo killed other people and bought poison to kill his self afterwards. For an example, Tybalt was Juliet’s cousin. Romeo and Tybalt were never in agreement with anything. When Romeo tried to be nice to Tybalt, Tybalt got aggressive and attacked him. That behavior resulted in Romeo’s killing of Tybalt.There are many themes that are represented in the story Of Mice and Men by John Steinbeck. The theme that I will focus on is idealism. The two main characters of this novel, George and Lennie, always dreamed on having a dream farm. Lennie loved to play with any animal that had soft hair. The story consisted of mice, rabbits and a dog. That dream that they had doesn’t get f ulfilled because George killed Lennie. George killed Lennie because Lennie had a mental disorder. It was George’s responsibility to take care of him. Lennie was just too much for George to handle, so George had no choice to kill him.Everybody in the story realized that the two men weren’t going anywhere in life. For an example, Crook expresses his doubt about the dream. Nobody ever gets into heaven and nobody gets any land. Crook is simply referring not only to literal ownership, but the dream of contentment about what these simple men fantasize. John Steinbeck’s Of Mice and Men revealed the dreams as well as the pains that these two men experienced in their lives. The actions of the characters in The Tragedy of Romeo and Juliet and Of Mice and Men were motivated by their emotions and not by reason.Duff Brenna is accurate in her statement that â€Å"All literature shows us the power of emotion. It is emotion, not reason, which motivates characters in literature . † Romeo in Romeo and Juliet and George in Of Mice and Men both committed actions based upon the negative emotions that they were experiencing. Had they given much thought to the emotions that they were feeling; and had they applied sound reason, I am convinced that their actions would have been different and so would the overall stories of the books.

Teacher and Students

A FIELD STUDY PORTFOLIO IN ADVANCE MONTESSORI EDUCATION CENTER OF ISABELA PRESENTED TO: DR. ROMEO Z. TARUN FS INSTRUCTOR IN PARTIAL FULFILLMENT OF THE REQUIREMENTS IN FIELD STUDY 5 (Learning Assessment Strategies) And FIELD STUDY 6 (Becoming a Teacher) MAYFLOR F. GUIYAB BSED III HGBAQUIRAN COLLEGE S. Y-2013(2nd SEMESTER) Table of Contents I.Title Page ————————————————————————————-1 Table of Contents ————————————————————————-2 Acknowledgement ———————————————————————â₠¬â€œ3 Dedication ———————————————————————————-3 AMECI Philosophy, Vision, Mission ————————————————-4 II. Field Study 5 – Learning Assessment Strategies Episode 1 – My Assessment List —————————————————————————-5 Episode 2 – My ATM Card (Available Test & Measurement) ———————————8 Episode 3 – Log Me —————————————— Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€10 Episode 4 – MYMP (Me & You Must Practice) —————————————————-11 Episode 5 – My PROPT (Product-Oriented Practice Test) ————————————12 III. Field Study 6 – Becoming a Teacher Episode 1- The Teacher: My Goal as a Person —————————————————16Activity 1 – The Global Teacher: Your Goal Activity 2 – The Professional Teacher Episode 2 – The Teacher in the Classroom ——————————————————— 24 Episode 3 – The Teacher and the Community —————————————————-31 Documentation ————————————————————————–34 Personal Profile —————————————————————————35 Date & Time of Visit ——————————————————————–36Acknowledgement I would like to thank our Heavenly Father for helping and guiding me always as I have finished this requirement. I would also like to extend my g ratitude to the following persons: To my parents, for their love, care, guidance and patience as well as financial support; To my classmates, who are always my companions when we are doing this observation in Advance Montessori Education Center of Isabela (AMECI); andTo the instructors who have been molding me and my classmates, for us to have a better future and a nice performance most especially to our FS instructor Dr. Romeo Z. Tarun who encourages us to conduct this observation. Dedication I would like to dedicate this Field Study to all students concerned and to those who appreciate my work. As I have done this observation, I can say that I have answered the questions very carefully in order to understand better and associate more particularly in this study.I hope that I have reached the expectation of my instructor and to anyone who can read as you scan this portfolio, may I give you a little knowledge. MISSION LANNA NATIONAL HIGH SCHOOL shall deliver quality basic Education w ith the use of indigenous and modern technology under the school system through the empowered competent, committed Teachers; and School Personnel’s who are accountable to the total development of every learner in the attainment of quality life, and where the family, community, and other institution actively support this effort. VISIONLANNA NATIONAL HIGH SCHOOL an institution of learning with competent, committed and responsible Teacher’s, School personnel, and Supportive stakeholders, where every learner is academically competent equipped with life skills and imbued with the desirable values of a person who is Makabayan, Makatao, Makakalikasan, and Maka-diyos. Field Study 6 Professional Education Subject: The Teaching Profession Activity1: The Teacher: My Goal As a Person At the end of this activity, you will be competent in clarifying your values about teaching, and in articulating and demonstrating your personal philosophy of teaching.The end goal is to be a positive role model for students. My Task To be an effective teacher in the future it is important to be aware of yourvalues  about  teaching. Write  your  mission  statement  or  philosophy  that  you  willuphold with conviction. To each your goals do the following tasks. Interview with Teacher 1 Teacher’s Name: Thelma Cabanilla Gender: Female Subject Taught: English School: LNHS a. My goals for my students are: I believe that the purpose of teaching is not to teach students how to memorize  facts,  or  how  to  know  all  the  correct  answers.The  purpose  of  teaching  lies  in  getting  students  to  truly  understand  the  concepts  being examined. I also believe that as a teacher, I must know what to teach in my classroom. It is vital that I have a solid understanding of the subject matter being taught. I realize that I  cannot  rely  solely  on  textbooks,  but  rather  I  must  seek  out  other  sources  of  information to aid in my teaching. b. What I want to teach my students are: I firmly believe that through proper motivation and guidance, my students will  engage  actively  in  the  class  and  improve  their  innate  talents.Act  with conviction based on what they learned and finally prove their worth as responsible citizen with a personality worthy of emulation as they claim their rightful place in our society. c. I  will  teach  my  students  by By  being  a  facilitator  in  the  classroom. As  a  facilitator,  I  will  guide my students through the subject matter in order to assist the students in their own discoveries. The  constructivist  learning  theory  is  one  that  I  believe  to  beworthwhile,  thus  I  agree  with  the  fact  that  students  can  construct  their  own learning.All students are capable of learning, and all students have somethin g to contribute to the classroom environment. Each student can bring new insights into a subject or raise questions about a subject that has not yet been considered. It is important to maintain a positive attitude about the students you teach. Interview with Teacher 2 Teacher’s Name: Timoteo Taquiqui Gender: Male Subject Taught: English School: LNHS a. My goals  for my students  are: My goal as a teacher is to equip students with the essential tools needed in life.By giving students knowledge and  skills they  need to succeed  as  adults,  by  urging  them  to  pursue  their  dreams,  and  by impressing on them the joy that comes  from learning, I believe that I  can positively  influence  my  students  and  give  them  a  Ã¢â‚¬Å"love  of  learning†. Teachers are virtually limitless in their capacity to touch many different lives; I look forward to being a part of this. b. What I want to teach my students are: I beli eve that by creating a student-centered learning, my students will be able to take charge of their own learning with little assistance from the eacher. This will inculcate a sense of responsibility in them in terms of  achieving their learning goal. As a teacher, one of my roles would be to coach and facilitate them throughout the learning process by providing information and giving useful guidelines in order for them to achieve their learning target. c. I  will  teach  my  students  by I will teach my students by instilling a passion for lifetime learning. Our students are in need of life lessons. They need to learn content, but they also need help learning how to think, how to believe, and how to succeed.SUMMARY TABLE OF INTERVIEW RESULTS * Values are principles, qualities, or objects that a person perceives as having intrinsic worth. Every individual has a personal hierarchy of values that may include success, wealth or monetary comfort, love/companionship, a sense of   accomplishment or achievement, and of  course, survival. When a teacher spends time after school to help a student, he may feel he has sacrificed his own needs to the needs of the student. * â€Å"a  good  leader  is  a  good follower†. In  a  classroom, obviously, the teacher is the leader and the students are the followers.And in order for the followers to obey the rules  implemented  by  the leader, the leader must first observe  those  rules him/herself. * Progressivist – teaches to develop learners into becoming enlightened and intelligent citizens of a democratic society. * Existentialist – to help students understand and appreciate themselves as unique individuals who accept complete responsibility for their thoughts, feelings and actions TEACHER * Existentialist–  helpsstudents  define  their  ownessence  by  exposing  themto various paths they take in  life  and  by  creating  an environment  in  which   They freely  choose  their  own preferred way. Idealist Stimulates learner’s  awareness  of  ideas and be a transmitter of cultural heritage My Reflections LEARNING  is  a  never-ending  quest  in  search  of  answers  for  many questions. It is a process of revealing the mystery of life, a dynamic and fundamental step towards a gradual transformation of a learner from naive to learn. Thus, a learner must be guided accordingly by the hands who want to mold him to be the best epitome of his alter ego. The fate of a learner lies in the hands of teachers and in the teaching and learning process.In an informal setting, they say that anyone can be a teacher; simplybecause  anyone  can  teach  a  thing  to  an  individual  base  on  his  previous experiences. In formal education, licensed teachers are tasked to mold the young  minds  of  the  learners. Therefore,  a  teacher  must  be  effic ient  and effective in her chosen field of endeavor. Impart to her students all necessary faculties needed for them to be competitive globally and to act accordingly as true Christians with a Filipino pride. Learning Activity 2: The Global Teacher:  Your Goal At the end of this activity, you will gain competence in developing yourself become a global teacher.Your Tasks: The rapid change in technology makes the world smaller and links people with one another in one global community. To become an effective teacher, you should been downed with skills and knowledge to make you a global teacher. Characteristics of the Global  Teacher A global teacher works hard and gives her best to teaching. A global teacher utilizes technology. A global teacher has a good command of English. A global teacher is responsible and committed to teaching. A global teacher can execute her lesson well. A global teacher must be globally competitive and aware of the educational system outside the country.Y our Analysis For the response of the teachers, what conclusions can you draw about the characteristics that a global teacher should have in terms of: a. Knowledge A global teacher then should be equipped with various useful knowledge that would help him face the multiple challenges in the world of teaching, and being  knowledgeable  means  possessing  excellence  in  communication  skills, adaptive  to  environmental  changes  and  one  who  teaches  in  a  world  class standard. b. Skills To become a global teacher, we should master skills and competencies, which can address global demands, thus it is being updated on what modern world can offer.As a global teacher, we should easily learn everything that has importance concerning teaching for this would make us better. c. Values Being  a  global teacher  means  a  lot of  responsibilities,  so  he  must  beamed with characteristics that will enable him endure the challenges in the field of  teaching, and that is showing your compassion, commitment and excellence on the teaching profession. Your Reflections Reflect on the image of the global teacher. Make an essay about a global teacher and the challenges that they face in a globalize world. Exciting, and rewarding are just some characteristics that explain teaching.Overcoming anxiety and nerves in the first year is our greatest challenge. Moving into the classroom for the first time can be a daunting and challenging experience for everyone. You are required to immediately equip four years of knowledge into your teaching and classroom management. While this may seem to be a difficult time, it will only get easier. There are many rewards with being a teacher, however it is important to note that it is not a role to be taken lightly – it is a difficult role to fill. As teachers, we need to understand that every child will learn differently.No matter their culture, gender or socio-economic status, s o as teachers you have to encourage and have a level field in your  classrooms. You  have  to  know  how  to  reach  each  student. As  teachers  you need to let the students know that they don’t have to follow the stereotyped roles of  society. The teachers of 2010 and beyond will face many challenges that we are currently unaware of. What we can do to prepare for those challenges is look at where things may be headed in terms of technology and population and cultural diversity. Make  an  illustration  here  on  how  you visualize  the  global teacher.Learning Activity 2: The Professional Teacher Your Goal: At the end of this activity, you will manifest a deeper understanding of the rights, duties, and responsibilities of professional teachers and how these impact you as a future teacher. Classify the information you have gathered using the matrix that follows: Magna Carta for Public Teachers Magna Carta for Public Teachers Magna Carta for Public Teachers Professionalism Systems of  Monitoring She said that DepEd officials evaluates the school annually  The principal also observes the teachers’ performance regularly Magna Carta for Public TeachersRewards and Incentives System She insists that still there should be additional allowance for teachers. Magna Carta for Public Teachers Professionalism Professionalism Respect Discipline She emphasized t hat in the school where she belongs, disciplinary actions are laid in case a teacher has done any malpractice Disciplinary Procedures The teacher does a lot of paper works, but if you really love teaching, you’ll never feel the burden Compassion Enthusiasm Duties and Responsibilities Professionalism Commitment to teaching professionShe is enjoying her benefits as a professional teacher Rights and Privileges of  Ã‚  Teachers Your analysis Give the values reflected by the policies and guidelines found in the school. All aspects of policies and practices in school are the values and the way the whole school  and  community  interacts  with  each  other. Everyone  is  expected  to  be responsible for his or her own behavior, respect the rights of others and share values. It is vital that children, staff and parents work actively in partnership to enable all children to realize their full potential.There should be continuity to actively encourage parents to become involved in the life of the school. There must be a commitment to raising awareness of wider issues, by involving members of the learning community and exploring the surrounding environment. Learning is a lifelong process and it is our responsibility as adults to model effective learning. This vision statement therefore applies to everyone who has a role to play in the provision of education at our school – governors, support staff, teaching assistant sand teachers. Your ReflectionReflect on the policies and guidelines that concern the teachers. T he codes of conduct mandate several rules and regulations that teachers must adhere to. First, teachers are responsible in taking care of the students who are under their supervision with the main objective of assuring their safety and welfare. Second,teachers  should  observe  confidentiality  of  information  that  is  related  with  theircolleagues  students  and  families  that  the  educators  acquire  during  their  teachingprofession, unless the disclosure of this information is needed for the well being of a person.Third, teachers should maintain the good reputation of the teaching profession by showing acts of honesty and integrity as well as making sure that their privateinterests  especially  outside  of  school  does  not  interfere  with  their  professional responsibilities. Fourth,  teachers  should  respect  all  the  members  of  the  schoolcommunity  namely:  students,  parents,   co-workers,  and  school  management  bymaking sure that they are treated equality and are not discriminated by gender, sexual orientation, religion, age, race, and others.Fifth, teachers should conduct their relationship with their students in a professional, respectful, and appropriate manner. Sixth teachers should not practice their teaching responsibilities while in the influence of any substance that weakens their capability to perform their duties properly. Lastly,teachers  must  present  comprehensive  and  accurate  information  and  documentsregarding their professional status credentials, and related experiences. Express  your  insights  and  feelings  regarding  the  demands  of  being  a  future professional teacher. Good teachers typically have good organization skills.They have the ability to work with many different types of people. Patience is also a very good quality. It is true that some people, from the time they are i n first grade, know they want to be teachers. For others, the idea to become a teacher can be a sudden insight, or a feeling  that  ferments  for  years  in  some  remote  corner  of  their  consciousness. Regardless of  where  the idea  comes  from,  for  many,  the images  associated  with becoming a teacher are compelling. Teachers must be flexible to handle the inevitable obstacles that occur each day.Teachers must be able to handle problems and a room full of students all at one time. Problems also arise outside of the classroom setting. In addition,  school  politics  and  colleagues  with  different  teaching  styles  can  cause tension. EPISODE 2: My Tools ORGANIZATIONAL PLAN Each day that I  spend in the classroom presents new  challenges. Every situation and each different child requires an individualized response from the teacher. As I’ve observed the organizational plan, the classroom structured is fl exible. The instructions are care both individually and by group.And the teacher is ensuring that furniture arrangement promotes learning opportunities. She has a seating chart. She maintains plans for materials and assignment management. And she creates bulletin boards that foster learning. She ensures bulletin boards are informative, relevant, aesthetic, and related to class activities. SCHEDULING During my observation, I’ve noticed that the teacher is following guidelines to ensure a  successful scheduling. First she  incorporates any  pre-scheduled  school  wide activities and routines into her schedule.She makes sure to include any activities that the whole school needs to be doing at the same time. For instance, many schools havea  Drop  Everything  and  Read  (DEAR)  time  right  after  lunch. Second,  she  createspredictable routines that her  students can  follow easily. Setting  aside a  short amount of time in the morning for students to complete arrival routines and get organized forthe  day  helps  to  teach  elementary  students  the  importance  of  being  prepared. Likewise, having specific dismissal routines they must follow helps them to make surethey  are  taking  home  everything  they  need  at  the  end  of  the  day.Third,  she coordinates with her grade-level peers. Fourth, she allows for some flexibility in her schedule. Lessons can run longer (or shorter) than she expected or some activities like earthquake and fire drills and special assemblies may interrupt her schedule. She said it's okay if every once in a while you don't accomplish everything you planned for the day. I think the activities were scheduled properly. The time was allotted sufficiently for the activity. Individual and group activities were all planned that’s why it saved time and it’s very organized.And through the guidelines she’s following she’ s coming up with an excellent scheduling. RECORD KEEPING The attendance is monitored by checking the permanent seat plan, through this the teacher can record easily the absences and present in the class. The teacher has a record book where she gets every time she checks the attendance. I’ve seen a portfolio cabinet wherein all of the portfolios of the students are put. The teacher said that it’s very helpful if they have portfolio so that they can monitor their individual performance. PHYSICAL ENVIRONMENTThe physical environment of the classroom is very conducive to learning. The classroom is clean, properly ventilated and lighted, and free from noise distraction. Also the bulletin and displays were neatly arranged. They have seat plan so the seats of the students are organized and permanent. I think the seating arrangement also suits the learning experience of the pupils. The classroom furniture is matching the size of the students. DISCIPLINE The teacher is establish ing the discipline inside the classroom by following some rules and guidelines.First is by selecting a discipline policy that is appropriate for her students. She considers her students' age and developmental level when selecting a plan. Second is by pairing the rules with both consequences and rewards. If she will punish misbehavior, she also wants to recognize good behavior. She tries to mix positive and negative nearly equally in her plan to ensure that students see that good behavior is rewarded just as much as bad behavior is punished. Third she created a poster on which this discipline policy is clearly outlined.Featuring her policy on a poster allows students to refer to the regulations regularly and gives her something to which to draw students' attention when discussing behavior. She placed her poster prominently on a classroom wall. I think her approach is very preventive. By creating and implementing a classroom discipline plan to prepare her students to follow the rules and regulations that they will be bound by once they reach adulthood. Simultaneously, she'll be maintaining a calm, productive classroom atmosphere conducive to conventional studies. ROUTINESThe  routines  are  properly  established  and  organized. The  teacher  is  alsofollowing some guidelines in establishing routine in the classroom. she organizes her classroom to be effective in providing structure and routine before her students arrive. There  should  be  a  space  for  their  backpacks,  lunches  and  homework. She labels everything clearly. Materials and sections of the classroom should also be labeled. This will allow students to become more familiar with where things go. Then when she says it is time to clean up, they will be able to do so effectively. Third, she sets a schedule.This sounds easy, but it is very important. Structure and routine are essential to keeping children focused and your stress level down. And I think all the pro cedures are placed properly and effectively. When routines and procedures are carefully taught, modeled, and established in the classroom, children know what’s expected of them and how to do certain things on their own. Having these predictable patterns in place allows teachers to spend more time in meaningful instruction. Classroom Management Matrix Classroom Management Area Observation Description of the Supportive Measures ObservedYour Analysis Comments on the Effectiveness of the Supportive Measure Your Analysis Recommendations 2. Schedule During my observation, I’ve noticed that the teacher is following guidelines to ensure a successful scheduling. First she incorporates any pre-scheduled school wide activities and routines into her schedule. She makes sure to include any activities that the whole school needs to be doing at the same time. I think the activities were scheduled properly. The time was allotted sufficiently for the activity. Individual and group acti vities were all planned that’s why it saved time and it’s very organized.And through the guidelines she’s following she’s coming up with an excellent scheduling. One of the hardest things to do as an elementary school teacher is to find the time to fit everything in. There are so many skills to teach and only so much time in the day. To make sure that the entire curriculum is taught effectively, it helps to create a classroom schedule. 1. Organization Plan As I’ve observed the organizational plan, the classroom structure is flexible. The instructions are carried both individually and by group and the teacher ensures that furniture arrangement promotes learning opportunities.Teacher success, in relation to both student learning and teacher efficacy, can often be traced to the ability of the teacher to manage the classroom. Research shows that effective classroom organization and management during the first few weeks of  school are crucial in deter mining expectations and behavior patterns. I think the teacher really implement and create a good organizational plan. I have observed that she provides a productive, safe environment conducive to learning. 3. Record Keeping Effective, continuous record keeping lies at the heart of our best teaching and learning.It enables us to plan, to organize, and to create the best learning environment for each child. Record keeping is an effective tool for tracking contributions made by individual students in our classroom, for assessing students, for informing students and parents about growth overtime, and for setting goals. I think the teacher has effective record keeping technique. She’s right in creating a seat plan to easily check the attendance of the pupils. Also, it is correct to have a portfolio for each student so that they can monitor their performance and enhance it right away if  needed.The attendance is monitored by checking the permanent seat plan, through this the tea cher can record easily the absences and present in the class. The teacher has a record book where she gets every time she checks the attendance. I’ve seen a portfolio cabinet wherein all of the portfolios of the students are put. The teacher said that it’s very helpful if  they have portfolio so that they can monitor their individual performance. Model whenever you can and tone your language to suit large mixed ability classes, small groups, weak students, and finally, the age of your students.She coordinates with her grade-level peers. She allows for some flexibility in her schedule. Lessons can run longer (or shorter) than she expected or some activities like earthquake and fire drills and special assemblies may interrupt her schedule. She said it's okay if every once in awhile you don't accomplish everything you planned for the day. Effective enforcement of  classroom discipline is a pre-requisite for the smooth operation of any classroom. Although your main goa l as a teacher is to provide your students with the academic lessons they need to succeed in adulthood. I think her approach is very preventive.By creating and implementing a classroom discipline plan to prepare her students to follow the rules and regulations that they will be bound by once they reach adulthood. Simultaneously, she'll be maintaining a calm, productive classroom atmosphere conducive to conventional studies. The  teacher is establishing the discipline inside the classroom by following some rules and guidelines. First is by selecting a discipline policy that is appropriate for your students. Consider your students' age and developmental level when selecting a plan. Second is by pairing the rules with both consequences and rewards. 5.Discipline 4. Physical Environment The physical environment of the classroom is very conducive to learning. The classroom is clean, properly ventilated and lighted, and free from noise distraction. Also the bulletin and displays were nea tly arranged. They have seat plan so the seats of the students are organized and permanent. I think the seating arrangement also suits the learning experience of the pupils. The classroom furniture is truly matching the size of the students. Every teacher knows that a safe, clean, comfortable and attractive classroom can stimulate learning and help build a classroom community.But for many teachers, setting up the physical environment of  their classrooms can be quite daunting, especially when faced with older buildings, crowded classrooms and insufficient storage space. I think the teacher did a good job in creating a physical environment that is very conducive to learning. She has a classroom suited to the learning ability and level of her Grade II pupils. I can conclude that if she maintains it, definitely she can come up with her goals in providing a classroom promoting a healthy and wonderful learning experience. I think the routines she formulated are very unique yet effectiv e.Actually, if I’ll be in the actual field, I’m going to follow her superb and operative routines so that I can also ensure a well managed time and well organized classroom. 6. Routines The routines are properly established and organized. The teacher is also following some guidelines in establishing routine in the classroom. First she organizes her classroom to be effective in providing structure and routine before her students arrive. There should be a space for their backpacks, lunches and homework. Second, she labels everything clearly. Materials and sections of the classroom should also be labeled.This will allow students to become more familiar with where things go. Then when she says it is time to clean up, they will be able to do so effectively. Third, she sets a schedule. This sounds easy, but it is very important. When students arrive in her classroom they should know that they have until a certain time before their desks should be cleared and the teaching sta rts. Also she plans for the in-between times as well. Structure and routine are essential to keeping children focused and your stress level down. And I think all the procedures are placed properly and effectively.When routines and procedures are carefully taught, modeled, and established in the classroom, children know what’s expected of them and how to do certain things on their own. My Analysis 1. In what area of classroom management was the teacher most effective? Which of  the supportive measures were effective? Why? The area of classroom management wherein she’s most effective is discipline. I think all of her supportive measures were efficacious. During my observation, I’ve noticed that the pupils were well disciplined and behave not only during discussion but even the teacher is away.So it just shows that the guidelines she’s following to maintain  a  good  discipline is  working. She already  starts  to  develop  good  moral ch aracter among pupils. 2. In what area of classroom management was the teacher least effective? Which supportive measures were not effective? Why? I think she’s very effective in all aspects. I am not seeing any flaws regarding her organizational plan, record, keeping, physical environment, scheduling, discipline and routine. It might not be perfect but I think the important thing is to fulfill your goals in accordance to your guidelines. . Suggest more effective ways for your answer in number 2. Since I am seeing her classroom management with no flaws, I’ll just leave a good message about it. Effective classroom management is about the teacher keeping the students actively involved in the entire lesson. By practicing the teaching strategies above, teachers will greatly reduce classroom management problems. My Reflections 1. Describe at 3-5 characteristics of a teacher who can establish a well-managed classroom? There are so many classroom management characteristics lik e: Adaptability is the ability of a person to blend him / herself according to the external situations. Decisiveness – having the power to decide; conclusive. Characterized by decision and firmness resolution. Delegation – is the handing of a task over to another person, usually a subordinate. It is the assignment of authority and responsibility to another person to carry out specific activities. 2. What characteristics do you have at present that can make you an effective classroom manager? Elaborate how these characteristics can help you. I think I have the empathy, adaptability, and decision making skills.I can definitely sue those skills to ensure an effective classroom management. Adaptability will of  course help me to adjust easily to situations and changes. For example, if I’ll be transfer in different classroom I can still create a new and good atmosphere to my students which will promote a conducive learning environment. Also, if I have the empathy I can understand their  individual differences which will help  me to maintain and foster good discipline and routines inside the classroom. And last, if I have the good decision making skills I can create a guidelines and rules to insure and effective classroom management. . What characteristics do you have at present that can hamper you from becoming an effective classroom manager? How can you overcome these characteristic? Honestly I need to develop and gain more patience because I think that’s the characteristic that I have that will definitely hamper me in having an effective classroom management. I know that I can overcome this because I’m already practicing it in my daily life. I’m beginning to be more patient at all time regardless of  whatever the situation is. EPISODE 3: THE TEACHER AND THE COMMUNITYThe role of the teacher in a positive school-community relationship is extremely important since it is the teacher who is the backbone of the educatio nal system. Although  school  boards  create  school  policy  and  administrators  interpret  thesepolicies, teachers are the personnel who implement school policy. Teachers must alsobe  prepared  to  make  the  most  favorable  impression  possible  in  even  the  mostinnocent  of  circumstances  in  order  to  maintain  public  support. The  community's perceptions of the teacher affect their perceptions of the school and

Current Trends in Education

Current Trends In Education Current Trends in Education The trends in human resource management and its implications for education are altering. Several trends are innovative and are a result of the economy, while others are escalating as a result of new regulations, new types of degrees and education, and the type of people employed. The purpose of this paper Is to Inform the reader of several of these current trends.The trends that seems the most critical to human resource management in education are the reduction of teachers, enhancing of job application questions, integration of technology, employee benefits, and providing staff recognition to encourage retention. These trends mark substantial challenges to schools with reference to workforce development, retention, and recruitment. New human resource management trends in education can be directly linked to the downturn In our economy. (Shield, November 2009) Simply because more schools are downsizing the amount of teachers retai ned, and increasing classroom sizes due to budget cuts.Superintendents need to work with their human resource managers to determine what types of individuals will work well tit their teams. Beyond the basic educational skills, human resource managers need to know if new hires and possible candidates can produce, can be trained, and can embrace a team environment, as well as generate the ultimate goal of enhancing the academic performance of students. More human resources managers are expanding upon Job application questions as far as education, Internships, and experience in fields of expertise.This allow for changes in interview techniques. Two types of interview may be used by the human resource manager. One Is the screening and the other is the behavior. The screening is to cull candidates that do to meet specific requirements. The behavioral interview is to make an educated selection based on fair and legitimate criteria and not a â€Å"gut feeling. † (Mayer, 2008) Questi ons for applicants that are directly related to the school environment will be important in determining who gets the job and who is passed over.While the old standards still apply to race, creed, religion, and disability as well as others, human resources managers now have to deal with the state certification of individuals and make a dedicated effort to giving these people every opportunity afforded to them by the certification they received. In the district in which I am employed, prospective teachers must have passed at least one of the three test needed for certification In order to be considered for employment. There are six goals of the strategic plan for my school.The first is improving academic performance for ALL students while closing the achievement gap. Next is establishing and maintaining the school climates and facilities that are safe, orderly and supportive of effective teaching and learning. Third is developing and implement procedures and programs that will infuse technology to assist in improving the physical and fiscal management, inclemency, effectiveness, Ana accountability AT ten cocoons Loving. I en recycling ten over-representation of minority and other at-risk students in Special Education.Fifth is developing programs to promote the recruitment and retention of quality staff. Finally is promoting and encouraging positive home, school, business, and community relations that encourage student achievement. Technology is a significant trend and a fundamental part of our strategic plan. This trend is that technology advances are quickening in pace since the sass (Citron and Davies, May 2008). This trend may accelerate more significantly as more schools integrate genealogy into there academic programs.These trends will necessitate more flexible and technologically as'. N. Y schools. The two technology objectives in our strategic plan are to ensure effective use of technology through ongoing training of our office staff and having teachers t o utilize technology for lesson planning, attendance, and grading practices. Office staff will update information on the school's website, use Manatee for budgetary matters, access available tools in SASS program, and use the television scroll to display information.Teachers will utilize technology in daily classroom lessons. The action steps to be used are incorporating technology components each day in lesson planning, allowing teachers to check-out laptops from carts for projection, acquiring screens for each classroom, utilizing Interactive Achievement throughout grading period, providing professional development by individual teacher needs, performing required division testing on the computers (4th and 5th grade benchmarks) and using Study Island and SOL Pass.Employee benefits is a trend that is vital. These programs will need to make radical changes to attract and retain employees. Since the majority of the current workforce is aging, hey will be looking for better prescriptio n coverage and long-term care benefits. Employees want a good retirement plan. A great employee benefit plan help organizations to compete in today's world. Employees not only work for money but also for intangible benefits such as enjoyment and a sense of purpose. Workforce Management 2003) One objective of the strategic plan is to show improvements by subgroups by at least 10% on each Virginia Standards of Learning test in all four core subjects. One strategy to be used in reading is exposure to different genres and understanding their components. The action steps to take place to ensure this are sing genre studies, utilizing read aloud, using Reading Mastery Program textbooks, and participation in the Accelerated Reading Program. One strategy to be used in mathematics is to enhance the quality of instruction for students.The action steps to ensure the success of this strategy is moving experienced teachers in grade level math positions, seek professional development opportunities for math teachers, incorporate learning stations to break down activities, and participation in SOL math night. One strategy to be used in history is student involvement in surrounding to include local, state, national, and live theaters. The actions steps to be taken to be successful in this area are field trips, local speakers, Jamestown outreach, Theatre Four, and Art Bank (living history).One strategy to be used in science is grade level mastery of standards for each student. The action steps taken administer an end of year test that contains all tested standards, communication between third, fourth, and fifth grades about expectations of students, and working with students in small learning stations to gauge individual needs. Staff recognition is a very effective part AT our strategic plan Ana another current trend. One goal In our cocoons improvement plan is to establish and maintain school climate.The school improvement committee meets and decides up staff recognition activi ties that will improve the school climate. The objective is to recognize staff that support effective teaching and learning. Recognizing staff has been one of the least expensive and most effective ways in helping to boost morale and productivity and well as enhancing retention. The staff where I work have been extremely responsive to being recognized, which is shown by the low turnover rate at the end of each school year.Staff recognition is shown weekly by spotlighting teachers and other staff members. I believe that staff recognition could be improved where I work by offering small monetary incentives. This could be funded by the fund raising committee. Gala events, best-of-the-best awards, on-the-spot recognition, gift certificates, performance reward points, sending e-cards and Just plain saying thanks – most organizations today have some form or all of these recognition programs in place with the intent to make a positive difference. HRS Management 2010) The author has discovered that a revision of this plan is needed to meet the needs of the 95% majority population of African American students. Teachers will use multicultural activities and games to stimulate instruction. In math classes, The Math Party will be used. This is a program that is used for intervention for at risk students and as a re- teaching/review tool for all students. In science and history classes, teachers will use songs and raps to incorporate in their instruction.These integrated musical experiences can provide excitement for learning and improving students' skills. Music is able to expand the instructional process and accommodate differences in learning styles. Most of all, music adds an unique element of fun to the classroom. When children learn with music it makes learning more exciting. With music, students tend to work harder. In the concluding examination, it is irrefutable that rhyme, rhythm, and music can make immense differences in teaching and learning. They are th e intangible educational instruments that can touch students in extremely unforgettable ways.

How Consumer Attitudes & Behaviors Affect Their Purchases Essay

How Consumer Attitudes & Behaviors Affect Their Purchases - Essay Example These savvy marketers understands their consumers’ behavior and thus able to distinguish between attitudes and beliefs. Every year, firms (through their marketing departments) heavily invest in researches to identify consumers’ attitudes which are more likely influence their purchasing behavior. Marketers go ahead to persuade consumers through promotions and advertising in order to win consumer loyalty. Consumer Attitudes In marketing, attitude is defined as â€Å"the general evaluation of a product or service formed over time† (Maxfield, 2012). Attitude greatly affects the purchasing and buying habit of consumers as well as satisfying personal motives of the consumers. As such, consumer attitude is defined as a composite of beliefs, behavioral intention and feelings. On the other hand, behavioral intention of consumers is defined (in marketing content) by consumers’ beliefs and feeling about a given product. Consumer feeling and behavior are treated toget her as they are relatively interdependent, thus collectively representing purchasing force of the consumer. This relationship and interdependency can be represented as below: Attitude is majorly a psychological term that applies in all fields involving human beings. Attitude refers to the inner feelings and understanding of individuals towards certain object or concepts. Attitude may be either negative or positive depending on the existing environmental factors triggering the feeling. Behavior on the other hand, refers to individuals’ reactions or actions towards certain environmental elements in response to the internal or external stimuli. Attitudes and behaviors of customers have almost similar effects on the buying trend of certain product. Attitudes exist in three main components that include cognitive, affective and behavior. Cognitive component of consumer attitude relates to the general consumer’s belief about a certain product. Affective component of the consu mer attitude attributes to feelings and emotional response of customers towards particular objects. Behavior component on the other hand, entails learned tendency by consumer to react in particular manner towards particular activity or objects. In this way, the psychological effects that drive the understanding of consumer/rational choice are clearly understood and noted. Beliefs Belief is a fundamental component of consumer’s purchasing powers and influences. A consumer may either hold a positive or negative belief towards a product or a store. For instance, some consumers may belief that coffee tastes good while those with negative belief towards this product will say that it stains papers and is easily spilled. Though rare, some consumers have a neutral belief on a product (e.g. coffee is black). Other group of consumers may have an indifference belief about a commodity. Notably, the beliefs consumers carry on products have no to be accurate and at times may be very contra dictory. Since consumers hold a number of beliefs towards the range of products, it is quite had to reach the ‘bottom line’ of such variations in beliefs. Brand equity and consumer attitude Brand equity is an important concept in building and developing marketing strategy. Brand equity is an indication of profitability index as perceived by marketers. However, brand equity depends on brand attitude. From consumers’ point of view, brand equity entails positive brand attitude founded on

North American Compensation Essay Example | Topics and Well Written Essays - 500 words

North American Compensation - Essay Example This company has also its own strategies and services considerably unique with the other companies. Mercer.com is more on the point of view regarding new leadership that developed with the business in Harvard as well as Oliver Wyman. The organizations which were considered to be around the world may be able to recognize the payback including the competitive advantage in order to develop the human capital's rights that include the outsourcing that is related and strategies of investment. More clients were able to get the right in the passion of Mercer. Mercer.com has its core strengths in the areas of consulting, investing and at the same time outsourcing coming from the advice to solutions that creates the unique position of Mercer. The capabilities are said to be highlighted in recent launched of campaign in terms of advertising viewed as cited below. as well as financial products helping the companies with the management of liabilities' benefit and in order to enhance the value of shareholder. This made Clark Consulting Services unique in terms of the strategies and their services.

The Raisin In The Sun Research Paper Example | Topics and Well Written Essays - 1250 words

The Raisin In The Sun - Research Paper Example The original play tackles the transformational processes of the various challenges of an older generation of working destitute black Americans compared to a younger generation. The movie, thus, gives cultural insight of generational straggles between conservative forces (evil) and transformational forces (good). This paper will discuss how embodiments and characterizations of good and evil are represented in the script and the film. It will also provide arguments served by the films interpretations of these forces. The paper will finally explore reviewer’s reactions to the film’s manifestations of good and evil arguments with regard to the films interpretations. The play tells a story of a younger family who lives in South Side, Chicago, in a crowded one-room apartment. The family is faced with a lot of antagonism with regard to how money inherited from Lena’s husband should be utilized by the family with each family member having a different proposal. For instan ce, Lena prefers using the money to buy a family house in the neighborhood; Walter Lee wants the same money to be given to him to start a business with his friends who are planning to open a liquor store which, he believes, will give him good returns. Beneatha, on the other hand, hopes to be given the money to enable her pursue her education. The result of these forces pulling in different direction creates an awareness of conflict between the forces of good and evil among the play’s characters as each attempts to win the battle. The forces of sexism are very much evident in the film as portrayed by Walter Lee. He opens the play with a discussion with her wife, Ruth, arguing, â€Å"Black women are the most backward of all women in the world (Green 1).† He says that this is due to the fact that they do not provide support to their fellow black men. This shows how male chauvinists expect to be given support and are looking down upon women. This also provides the supporti ng rhetoric for Water Lee as a patriarchal head of the family. This is an evil force that despises women in the society and feels that they are the voice of everything. In fact, the manner at which he calls these women looks like an abuse, especially calling them the most backward people in the world. The film depicts Beneatha as a new black voice, an ambitious girl who aspires to become a doctor despite what the society perceives. She is influenced by new ideas which put her at cross roads between joining black bourgeois status and black poverty. In the film, Beneatha suffers a lot from patriarchy and sexism in her quest to achieve her dreams (Green 1). Her ambition and aspiration of becoming a doctor, not a nurse, confronts the limitations of psychology that sexist and racist society has for black women. This puts her at loggerheads with adults who challenge her for conforming to their â€Å"beliefs† with regard to what role a woman play and how they are expected to behave (Poitier and McNeil 1). The question that may be asked is whether she is a feminist or not. However, throughout the film, she does not reveal any control over her own life since most of the time she depends on others for survival. In this case, Beneatha is depicted as a good character in the society with passion and aspiration to transform her life. On the other hand, the adults who challenge her dream represent the evil forces, as they do not want to see her pursue her education. As the film begins,

Corporate governance in Olympus Essay Example | Topics and Well Written Essays - 750 words

Corporate governance in Olympus - Essay Example This had to be initiated since the company was making a difference in the market with outstanding potential share. In 1950, Olympus started the diversification of its product offerings in medical systems, health care equipment, and then moving forward to SLR cameras and world’s first Microcassette recorder (Olympus Imaging America Inc., 2012). As a highly innovative company relying on its ability to give more value for its customers, Olympus continued responding to the market’s needs for products such as â€Å"clinical blood analysers, powerful microscope systems, and breakthrough digital cameras† (Olympus Imaging America Inc., 2012). After 93 years, today, Olympus seems to be so proud about its achievement from the past until at present while it continues to create the same enthusiasm in producing its product offerings and creating value for customers through its high standard quality product and service contributions in the market. From a very simple microscope, the world’s needs for clinical equipment moved to a higher standard. Olympus then started to produce products like â€Å"acoustic microscopes, ultrasonic endoscopes, reagent AIDS detection, digital voice recorders, and best-selling camera like the Infinity Stylus† (Olympus Imaging America Inc., 2012). Olympus therefore provides equipments and devices for medical and healthcare, imaging and information, and industrial applications (Datamonitor: Business Information Centre, 2007). Olympus is headquartered in Tokyo, Japan while the rest of its satellites or branches are situated in Europe, Asia and Americas. It has centralised structure, aiming to produce new innovative ideas, technological advancement, and a cut-above-the-other-manufacturing performance, consistently. The company is organised into different segment divisions such as imaging system business, medical systems business, life science business, information and communication business and other businesses (Datamonitor: Business

Universal Healthcare in the United States Essay

Universal Healthcare in the United States - Essay Example This paper argues that the universal health care system would be beneficial for the United States. The statement passed by Institute of Medicine is the US is the only developed nation that does not provide universal health care system. In United States, around 84% of citizens have some form of health insurance, either through their employers, purchased individually or provided by government programs. Some publicly funded health care programs are provided for the elderly, disable, children and poor and federal law mandates public access to emergency services1. The US government schemes reported for over 45% health care expenses. This makes US government the largest insurer in the nation. Based on health care expenditure, The US government has been placed in the top ten highest spenders among the United Nations member countries in 2004. Still more than 16% of population in America is without health insurance2. The health insurance costs are increasing faster than wages and medical bills, leading to personal bankruptcy in the United States. The lack of health care for all America is fundamental moral issue. In order to understand universal health care we need to understand its concept. It is a broad concept that can be applied in many ways. Universal health care is the form of health care benefit that is provided by the government. The government introduces varieties of programs aimed at promoting the right of admittance to the public to health care as much as possible. Many countries apply universal health care through lawmaking, regulatio n and through taxes. Some of the costs are paid by the patients but later they are reduced in taxation and paid to the patient. There is a need of universal health care system in United States of America. A single paying system operated by the government will help save on bureaucracy and investor profits. In this way

Employment Laws and HRM Strategy Essay Example | Topics and Well Written Essays - 1500 words

Employment Laws and HRM Strategy - Essay Example HRM strategy refers to a particular approach that is used in the management of human resources with the aim of providing a strategic framework to support short and long term strategies of an organization (Dessler, 2010). Employment law is one of the essential functional areas that provide organizations with the foundation for effective development of workforce that will support the organizational goals and objectives (Moran, 2007). In order to have a better understanding of the subject of employment laws and HRM strategy, this essay will apply the employment laws of the Virginia State to one of the HRM strategy problems. In particular, the essay will apply the employment laws of the Virginia State on the HRM strategy problem of introduction of new technology for employees who may experience physical limitations. The subject of physical limitations of employees is one of the most comprehensive in the employment laws in the United Constitution. This issue is covered under the Americans with Disability Act (ADA), as well as under the U.S Equal Employment Opportunity Act (EEOA) (Walsh, 2012). The ADA is designed to protect the rights of people with physical limitations including in the employment environment. This Act provides framework within which people with physical limitations can fully access and participate in all aspects of employment. It requires that employers should provide facilities and means through which employees with disability can access and participate in activities with as little difficulty as possible. The Act requires that the employer should do enough to remove the barriers that might deny people with disability with equal opportunity in accessing and using the facilities and services within an employment set up (Dessler, 2010). The provisions of the ADA are enforced by t he U.S Equal Employment Opportunity Commission. The employment laws related to this subject prohibits employers against discrimination of any kind to

Development Policies and Political Evolution of Jordan Essay

Development Policies and Political Evolution of Jordan - Essay Example He has the power to appoint or dismiss the judges, amend the constitution, wage wars, and control the armed forces. He appoints the council of ministers, led by the Prime Minister, which is entrusted with the responsibility of overlooking the affairs of the country concerning general policies. The Jordanian constitution offers three types of courts – civil, religious and special, and its administration comprises of a total of twelve governorates each of which is led by a governor, who in turn is appointed by the King. The governors of each governorate are responsible for supervising and managing all the government departments as well as developmental projects in their respective regions1. Jordan, a predominantly monarchist regime, has seen the tremendous transformation on the political front in the past decade. Its transition from monarchy towards a democracy has resulted in the establishment of a multi-party system, as well as framing of revolutionary laws and policies that aimed to ensure and safeguard political freedom. Jordan aims to establish itself as a model of a modern Islamic state with humanistic values. In pursuit of its ideals and a vision to create a model framework for the social, political and economic development of their country, the Ministry for Political Development was established in the year 2003. This organization put forward a formal definition that aptly described the country’s political ideologies. It is mentioned below: â€Å"Development is a modernization process that will develop the relationship between the State and society, which will foster public stability and social peace through developing the law regulating public affairs, stimulating public participation, restructuring the public concepts of organizational and institutional structures and transforming the concepts of adjustment loyalty, transparency, accountability and participation from the theoretical stage  into the application sphere."

Can Glee be called a musical in the classical sense Dissertation

Can Glee be called a musical in the classical sense - Dissertation Example This "Can Glee be called a musical in the classical sense?" dissertation describes particular features of the musical and analyze Glee to answer the question if we can count it as classical musical or no. The musical began as early as the 1600s, usually which was referred to as a narrative like opera. The main component was to create a hybrid model of the performances between acting and music. The narrative would depict the main ideals that were being told in the story, while the musical numbers were able to pause to reflect on the emotions and responses from the characters according to what was occurring within the plot. The musical numbers are able to take the viewer outside of the reality of what is occurring and break into the songs to show the other perspectives of what is occurring within the film. This is followed with narrative, performance and the dance gestures which follow each of the musical components as well as the overall structure of the musical. By adding in the hybr id expressions for the musical, there was the ability to have more creative expressions and freedom that allowed the viewer to understand the context of the narrative differently, either for entertainment or to deepen the meaning of the main film. The different concepts of the musical move beyond the interchanges of form and medium and into ways in which the musical is able to create a significant change to the overall feel of the performance. In both theater and film musicals, there is the use of music to change the context of the performance. ... he musical, there was the ability to have more creative expressions and freedom that allowed the viewer to understand the context of the narrative differently, either for entertainment or to deepen the meaning of the main film (Cohan, pg. 59). The different concepts of the musical move beyond the interchanges of form and medium and into ways in which the musical is able to create a significant change to the overall feel of the performance. In both theater and film musicals, there is the use of music to change the context of the performance and viewpoint of those that are watching the drama. The first component to this is the idea of repetition. The songs that are used in musicals comprise of three verses and choruses that are repeated in between the verses. When this goes outside of the traditional formula, then there is a noticed line which is repeated, known as the hook. The music then changes the context and meaning, specifically because the repetition is able to drive a theme for ward which couldn’t be heard or displayed in a regular narrative. The effect of repetition, combined with the several hybrid expressions intertwined with this, such as the gestures and dance, are then able to emphasize parts of the musical and create a different effect when speaking to the audience about the most important factors noted in a specific point of the musical (Kramer, pg. 180). The underlying component that is used with the musical then leads to the conventions of the musicals, specifically which becomes a synthesis of music / dialogue / dance and emotion combined with narrative. Instead of creating a linear form that is often expressed in other types of music, there is a focus on the hybrid definition of interchanging works, some which are used for emphasis, and others which

How does a free market prevent a monopoly Essay Example for Free

How does a free market prevent a monopoly Essay We often listen to this statement that there are no monopolies in a free market or a free market prevents monopolies. Though there are some arguments about if the statement is completely true and, if a government plays a part in making or preventing a monopoly. To understand and to validate the statement first we need to understand few terms used in the statement and concepts of market. Types of market economies There are majorly four types of market economies namely: * Free-Market Economy (or Liberal Market Economy). An economic system comprised mainly of privately-owned enterprise (businesses), low levels of regulation and relies heavily on the free-price system to allocate resources. This is distinguished with a planned economy based on private enterprise. * Social Market Economy A free-market system that utilizes heavy taxation and regulation and recognizes organized labour at the national level, but relies on the free-price system rather than economic planning to allocate goods and services. * Market Socialism and Socialist Market Economies An economic system comprised of state-run or worker-run enterprises and either a free-price system or a directed and regulated market to allocate resources. This is distinguished with a socialist planned economy. * Mutualism and Cooperative Markets A form of participatory economics where enterprises are run as worker and consumer cooperatives (socially-owned) which compete with each other in a market economy. This is distinguished from participatory and cooperative planning. To describe free market economy in a nutshell, it is the kind of economy in which the system of prices is a result of a vast number of voluntary transactions, rather than of political decrees as in a controlled market. The freer the market, the more prices will reflect consumer habits and demands, and the more valuable the information in these prices is to all players in the economy. Through free competition between vendors for the provision of products and services, prices tend to decrease, and quality tends to increase. Types of Competition There are namely four major kinds of competition * Perfect Competition * Monopolistic Competition * Oligopoly * Monopoly Monopoly exists when a single seller controls the supply of a good or service and prevents other businesses from entering the field. Being the only provider of a certain good or service gives the seller considerable control over price. Monopolies are prohibited by law however; government-regulated monopolies do exist in some business areas because of the huge up-front investment that must be made in order to provide some types of services. Examples of monopolies in the India are public utility companies that provide services and/or products such as gas, water, electricity and railways. To talk about monopoly in detail while single-firm monopolies are rare, except for those subject to public regulation, it is useful to examine the monopolist’s market conduct and performance to establish a standard at the pole opposite that of perfect competition. As the sole supplier of a distinctive product, the monopolistic company can set any selling price, provided it accepts the sales that correspond to that price. Market demand is generally inversely related to price, and the monopolist presumably will set a price that produces the greatest profits, given the relationship of production costs to output. By restricting output, the firm can raise its selling price significantly. The monopolist will generally charge prices well in excess of production costs and reap profits well above a normal interest return on investment. His output will be substantially smaller, and his price higher, than if he had to meet established market prices as in perfect competition. The monopolist may or may not produce at minimal average cost, depending on his cost-output relationship; if he does not, there are no market pressures to force him to do so. If the monopolist is subject to no threat of entry by a competitor, he will presumably set a selling price that maximizes profits for the industry he monopolizes. If he faces only impeded entry, he may elect to charge a price sufficiently low to discourage entry but above a competitive price—if this will maximize his long-run profits. Though monopoly has its advantages like in some industries it is the most cost-effective way of providing services, example is public utilities, as it would obviously be inefficient to have 2 or more competing sewer or power distribution systems in a city, monopoly has many disadvantages like Poor level of service as there is no fear of competition, No consumer sovereignty. Consumers may be charged high prices for low quality of goods and services. Lack of competition may also lead to low quality and out dated goods and services hence making it necessary to check a market from becoming monopolist to safeguard the interests of consumers. Now coming back to the question ‘how does a free market prevent a monopoly? ’ In a free market, competition drives away bad ideas. What stops monopolies? Small companies being allowed to set up and compete, without loads of regulations and fees making it impossible for them to afford to keep costs down. The free market prevents people from cornering the market, because there is always someone else that is capable and willing to make the same product for the same or lesser price. Eventually, if that keeps going, everything will be free in the free market, or rather, people will start trading for goods and services again, like they used to. Of course, along this path to free produce, you have the interruption of the Laws of Supply and Demand, where you eventually have too much product for the demand, and can no longer make a profit because of your losses. Price Wars eventually even themselves out, because at a certain price, everyone will be able to buy your product, and then no one else will need it anymore. When you have a high demand for a product, the price is naturally high. This obviously attracts investors and manufacturers to that field in order to make as much profit as possible. As more competitors enter that field of production, the prices for the product fall accordingly, until the supply meets the demand, and prices regulate based on 1. The cost to produce, and 2. The fact that everyone already has one and likely doesnt need another right now. For e. g. in the early days of the automotive market, Ford used to say You can have the Model-T in any colour you want, as long as its black. Then Chevrolet came in with more colour choices, and to compete, Ford had to change its policy or they would have fallen off the face of the Earth. Though there is an argument that exists, which says government sometimes does enable formation of a monopoly for example corporate trusts. Government supports an entity to a level that it becomes very big and later, in order to keep a check on the entity from preventing it to become a monopoly, government lays down set of rules and regulations which make it practically impossible for new budding competitors to grow up to the level of first organisation and compete efficiently, resulting in formation of a monopoly. But in the end, No matter how successful a company is, it is never immune from competition. It always faces at least potential competition, as well as actual competition from companies that offer substitutes. References: http://wiki. answers. com http://www. britannica. com http://answers. yahoo. com http://www. physicsforums. com.

Rights and Duties in a Letter of Credit Transaction

Rights and Duties in a Letter of Credit Transaction Introduction The letter of credit is the most commonly used method of payment for goods in international trade. This thesis highlights the imbalance of the rights and duties of the parties in a letter of credit transaction by emphasising deficiencies in the letters of credit system. In addition, on those areas where there is lack of justice and equity and which make the system of the letters of credit vulnerable for fraudulent activities. This thesis is structured in five chapters. First chapter after briefly discussing the structure of the letter of credit system, such as parties to the letter of credit transaction, kinds of letters of credit, step by step procedure of the transaction, different type of the documents used and the common defects in those documents, it also explains about the division of the risk under such a transaction and how the applicant’s risk has increased under UCP and very often the buyer is paying for the goods he had not contracted for. Second chapter after brief discussion of the drafting and interpretation of the UCP, explains about the reluctance of the courts to intervene in order to balance the rights and duties of the parties in a letter of credit transaction, status of the UCP, scope of the banks duties and in addition the disclaimer clauses under UCP. Chapter three explores the autonomy of the letters of credit, the doctrine of strict compliance and the ways in which the courts deal with documentary compliance. It further considers that overprotection of the â€Å"independence principle†, and the lack of â€Å"reasonable care† on the part of banks provides opportunities of fraud to the sellers to obtain payment without actually performing their duties to banks and buyers. Chapter four explains â€Å"fraud exception† to the autonomy principle in detail, the position of the fraud exception in England and the history of the English cases relating to the fraud. In addition it also examines the reasons for such an enormous increase in the number of cases relating to fraud. Finally, chapter five considers some of those methods, which can be used to avoid such an increase in fraud cases and also provides few suggestions to balance the rights and duties amongst all the parties to the letter of credit transaction. Chapter 1 Structure of a Letter of Credit Transaction Commercial letters of credit have been used for the centuries as a most common method of payment, in international trade. Letters of credit used in international transactions are governed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP). A commercial letter of credit is a contractual agreement between a bank (issuing bank), on behalf of one of its customers (buyer), authorizing another bank (advising or confirming bank), to make payment to the beneficiary (seller). The issuing bank, on the application of its customer (buyer), opens the letter of credit, and makes a commitment with the buyer to honour the credit, if the documents presented by the beneficiary are conforming to the terms and conditions of the credit. Thus, the issuing replaces the customer to make payment to the seller. Elements of a Letter of Credit An undertaking given by issuing bank to make payment Issuing bank gives undertaking on behalf of a applicant To pay a given amount of money to the seller On presentation of required documents under the letter of credit Within a specified time as provided by the letter of credit Documents must be in compliance to the terms and conditions of the letter of credit Documents must be presented at a specified place provided by the letter of credit Beneficiary Beneficiary is normally the provider of the goods or services and is entitled to payment as long as he can provide the conforming documents required by the letter of credit. The letter of credit is a distinct and separate transaction from the underlying contract (contract between seller and buyer). All parties deal in documents and not in goods. The issuing bank is not liable for the performance of the underlying contract between the buyer and seller. The issuing banks obligation to the buyer-applicant is to examine all documents to insure that they are in compliance with the terms and conditions of the credit. To get the payment it is for the beneficiary to provide all the required documents. If the seller-beneficiary conforms to the letter of credit, the seller must be paid by the bank. Issuing Bank Letters of credit only concerns with the documents, not with the goods, therefore the duty of issuing bank to pay to the beneficiary and than to be reimbursed from its customer will only be completed upon the completion of the terms and conditions of the letter of credit. Under the provisions of the Uniform Customs and Practice for Documentary Credits, the bank is entitled to have a reasonable time after receipt of the documents from the beneficiary, to examine the documents and then to make the payment. The issuing bank provides a guarantee to the seller that if the documents presented by the beneficiary are in compliance with the terms and conditions of the credit, then the bank will make the payment to the seller. Generally the documents presented include a commercial invoice, bill of lading or airway bill and an insurance document etc. Advising Bank An advising bank is usually a foreign correspondent bank of the issuing bank which advises the seller-beneficiary. Generally, the beneficiary wants to use a local bank to insure that the letter of credit is valid. In addition, the advising bank is responsible for sending the documents to the issuing bank. The advising bank has no other obligation under the letter of credit. Therefore, if the issuing bank does not pay the beneficiary, the advising bank is not obligated to pay. Confirming Bank At the request of the issuing bank, the correspondent bank may confirm the letter of credit for the seller-beneficiary and obligates itself to insure payment under the letter of credit. The confirming bank is usually the advising bank. There are two main types of Letters of credit: (1) Revocable (2) Irrevocable Revocable Letter of Credit Revocable letter of credit is not a commonly used type of the letters of credit. This type of letter of credit can be revoked by the issuing bank at any time, without notification to the beneficiary, for any reason. Such type of letter of credit can not be confirmed by the correspondent bank and the bank will act as an advising bank only. A revocable letter of credit can not be revoked after the presentation of the documents, if the documents are conforming to the terms and conditions of the letter of credit and the payment has been made. Irrevocable Letter of Credit Use of irrevocable letters of credit is very common in international trade. Irrevocable letter of credit can not be revoked or changed without the consent of the beneficiary. Issuing bank will make the payment to the seller, if the seller presents the documents complying with the terms of the credit, as agreed between seller and buyer. Such a letter of credit can only be changed with the permission of both buyer and seller. If it is not clear from the letter of credit that whether it is revocable or irrevocable, it automatically considers as irrevocable. Irrevocable letters of credit are of two kinds: Unconfirmed credit In case of unconfirmed letter of credit, advising bank does not confirm the credit to the seller and the issuing bank is the only party responsible for payment to the beneficiary. Advising bank will only pay to the seller after getting payment from the issuing bank and there is no risk for the advising bank. Confirmed credit In this type of credit, advising bank confirms credit to the seller. When the advising bank confirms that the documents presented are conforming to the terms of the credit, it will make the payment to the seller, and after that advising bank will contact with the issuing bank to get the payment. This type of letter of credit is commonly used, when the seller is unfamiliar with the issuing bank. Such a type of letter of credit is quite expensive because the banks have some liability. Step-by-step process In international trade as the buyer and seller are in different countries so when the buyer and the seller of the goods agree to conduct business, than because of the gap of time between delivery of goods and the payment, usually the seller wants a letter of credit as a guarantee of payment from the buyer. Than the buyer makes a request to his bank called the issuing to open a credit in the favour of the seller. at the request of the buyer, issuing bank issues a letter of credit in favour of the seller and forwards it to the corresponding bank called the advising or conforming bank., which is usually located in the seller’s country. Advising bank than either confirms the credit or not, depending upon the type of credit, and forward it to the seller. Seller than ships the goods and collects the documents required in order to meet the requirements of the letter of credit and finally to get the payment in time. Seller presents the required documents to the advising or confirming bank in order to get the payment in time. Advising or confirming bank examines the documents presented by the seller to check that whether they are conforming to the terms and conditions of the letter of credit. If the documents are in compliance, advising or confirming bank, in case of confirmed letter of credit, will make payment to the seller and will be reimbursed from the issuing bank and in case of unconfirmed letter of credit, advising or confirming bank will forward the documents to the issuing bank. Than the Issuing bank will, after examine of the documents, debit the buyers account if the documents are in compliance to the terms of the letter of credit. In the end, Issuing bank forwards the documents to the buyer. Most commonly used documents in a letter of credit transaction include: Commercial Invoice This includes description of the goods, their price, FOB origin, and name and address of the buyer and the seller. The buyer and seller information must be in compliance with the description provided in the letter of credit. Bill of Lading It is a document which shows the receipt of goods for shipment by a freight carrier. It is an evidence of the control of the goods and also acts as an evidence of the carriers obligation to transport the goods to their proper destination. Warranty of Title A warranty given by a seller to a buyer of goods that states that the title being conveyed is good. It is generally issued to the purchaser. Letter of Indemnity It is a letter specifically indemnifies the purchaser against a certain stated circumstance. Indemnification is generally used to guarantee that shipping documents will be provided in good order when available. Common Defects in the documents presented A discrepancy is some defect in the documents presented by the seller, which show their non-compliance with the terms of the letter of credit. Issuing bank can not change the terms and conditions of the letter of credit with out t he permission of the buyer. Therefore to avoid any delay in getting payment. Beneficiary should be careful in preparing the required documents. Common defects in the documents presented by the seller include: If the description of the goods is not consistent. There is some error in the insurance documents. If the draft amount is not equal to invoice amount. Loading and destination ports are not same as provided by the letter of credit. Merchandise description is not same as in the credit. If any of the documents required by the credit is not presented. Documents are generally inconsistent such as quality, etc. If the names of the documents required are not correct, as mentioned in the credit. Invoice is not signed as provided in the letter of credit. If prior to the presentation of the draft, Letter of Credit has expired. If the date mention in the bill of lading is different from the date stated in the credit. If there are some changes in the invoice which are not authorized by the letter of credit. In international sales, as the seller and the buyer are in different countries, there is a common problem of payment due to the difference of time between dispatch and delivery. Obviously, seller would like to receive payment for the goods when delivering them to the carrier and the buyer would prefer to delay the payment of the price until receipt of the goods. Therefore, a letter of credit solves this problem between the seller and the buyer. Generally, there are three separate transactions in a letter of credit transaction. The first is between a seller and a buyer, called an underlying transaction, by which the seller provides contracted goods to the buyer. The second transaction is between the buyer-applicant and the bank (issuer of the letter of credit), in which the bank issues a letter of credit to the seller-beneficiary. Finally, the letter of credit itself creates a relationship between the issuer and the beneficiary, in which, the issuer makes payment for goods upon the beneficiary’s presentation of the required documents, in accordance with the terms and conditions of the letter of credit as agreed between seller and buyer. The bank’s performance of payment is conditional on the delivery of conforming documents by the beneficiary. The banks are called issuers and are usually the applicant’s bank. Normally the issuing bank opens a letter of credit in its own name and requests its correspondent bank to notify the seller about the letter of credit. Sometimes, the issuing bank asks the correspondent bank not only to inform the seller of the issuing bank’s undertaking but also to add a confirmation. In this case, the credit is known as a confirmed credit and the correspondent bank as a confirming bank. The payment obligation of the issuing bank depends upon the beneficiary’s presentation of complying documents to the confirming bank or to any other nominated bank, in accordance with the terms and conditions of the credit. Under general practice, presenting â€Å"complying documents† means that they comply with the conditions of the credit â€Å"on their face†. From banking point of view, compliance â€Å"on their face† of the presented documents is sufficient. The â€Å"independence principle† (which will be discussed later) is the fundamental principle of the letter of credit system, which prohibits banks from looking beyond facial compliance of the documents, and therefore exclude whether or not there is actual performance by the seller-beneficiary. In fact, letters of credit system has emphasised the independence principle to such an extent that banks are ignoring the performance of the underlying contract very confidently. As a result, all the risk is on the honest buyers, who are sometime paying for goods that they had not contracted for. Importance of the research The primary purpose of the letter of credit system is to facilitate international trade, rather than to provide an opportunity to the banks to make profit. As the fraud is very common in these days, but UCP is not designed to prevent fraud. The number of frauds relating to the letters of credit has increased over the years. Buyers are particularly vulnerable to such practices under the letter of credit system. This situation shows that there is some ambiguity in the letter of credit system and a lack of balance between the rights and duties of the parties to a letter of credit transaction, which is being exploited very easily by fraudsters. Division of risk under a Letter of Credit Transaction As we have discussed above, a letter of credit transaction consists of three linked but independent contracts. The first step is that the buyer makes a contract with the seller for the sale of goods, called the underlying contract. Subsequently the buyer signs an application form requesting the bank to open a credit, which is an arrangement between the buyer and the bank. The third step is that the issuing bank informs the seller, who is the beneficiary of the letter of credit, of the credit and promises to pay against the stipulated documents provided the terms and conditions of the credit are met. The letter of credit allocates risk between the applicant and the beneficiary. By postulating a letter of credit, the beneficiary may greatly reduce the risk of not being paid and ultimately allowing the beneficiary of the letter to reallocate the risk of non-payment for delivered goods which do not conform to the underlying sale contract. Generally, banks are reluctant to dishonour a credit, since to do so may damage the bank’s reputation as a credit issuer. The cost of honour, however, falls on the honest applicant, not the bank. â€Å"If the beneficiary has breached the underlying transaction, payment under the credit to him will occasion loss, but that loss will not be the bank’s; it will be the applicant’s.† Increase in the applicant’s risk and decrease in the bank’s risk under UCP UCP is the governing law of the letters of credit, therefore there should be a balance regarding the rights and duties of the parties, but UCP contains rules that reduce bank risk. There is no provision asking for judicial intervention to compensate letter of credit parties in case of bank’s negligence. The provisions in favour of banks fall into two categories. The first provides sweeping immunity from liabilities that national legal systems may impose. Example of such a disclaimer is Article 15. Under Article 15, banks assume no liability for the genuineness, falsification or legal effect of any documents and therefore the issuer is immune from the liability for paying against forged documents, which on their face appear regular. Therefore, the payment by the issuing bank does not show that the buyer has received the goods, which he had contracted for. The security, which the beneficiary is getting under the letter of credit system is not the same with the security of the buyer. The second category of pro-bank provisions contains rules that set precise boundaries on what the banks must do, which reduces uncertainty about bank responsibility and provides clear guidance to bank employees. For example, the customer cannot stipulate non-documentary conditions of payment, and time limits on examination of documents are fixed rather than open-ended. In case of any loss, the buyer, which is the applicant for a credit, can take action against the seller for breach of contract or fraud, but has no right of action against the bank for bank’s negligence in examining the documents, which can be ineffectual for several reasons, such as insolvency of either the applicant or the beneficiary. Hence the burden of risk on the applicant is more than any party in a letter of credit transaction and in most of the cases, buyers are paying for the goods, they have not contracted for. Chapter 2 UCP and letters of credit Originally UCP has been drafted by the Banking Commission of the ICC, which was comprised of the representatives of the banking community, which shows the dominance of the banks and banking experts. Their dominance in UCP drafting, hints that in drafting UCP, ICC was acting as a private legislature. It looks that the rules contain in the UCP are much beneficial for the banks than any other party, and giving a limited chance to the judiciaries to interfere to protect customers from any careless behaviour of the banks. The authority to interpret the UCP rests in the ICC Commission on Banking Technique and Practice, which can apply these interpretations to solve the problems arising in any case. Because of wide publicity and distribution of commission’s answers, their interpretation can be considered as an official interpretation of the UCP. Commission can enhance, interpreting, and sometimes amend the provisions of the UCP. The banks which deal with the letters of credit, act upon these interpretations and any amendments. As in theory, commission is only answerable to ICC members, therefore the chances of any challenge to such interpretation is very low. Role of courts in balancing the rights and duties of the parties In Discount Records Ltd. v. Barclay Bank Ltd., the judge was reluctant to â€Å"interfere with bankers’ irrevocable credit and not least in the sphere of international banking†. The position is same in many other cases. The apparent reason for the reluctance of the judges to interfere looks that they are afraid from the threats of the banking experts that their decisions would have an unfavourable affect on international trade. The difficulties of the courts to balance the rights and duties of all parties to a letter of credit transaction have increased. In Mannesman Handel AG v. Kaunlaran Shipping Corporation, the Swiss bank argued that the bank was in rejecting the documents by the German company relying on the independence principle and the discrepancies appeared on the documents. The court was asked not to apply the good faith principle otherwise the court â€Å"would be calculated to undermine if not destroy the doctrine of strict compliance and to blur if not extinguish the distinction between transactions concerning goods and transactions concerning documents.† Normally the judicial decisions relating to the legal aspects of documentary credits base on either the express intentions of the parties or established business practice at the time, the parties entered in a contractual relationship. In cases where the UCP provisions are different from business practice, a court will apply the UCP if the UCP is incorporated in the contract of the parties. It shows that courts have assented to the entire documentary credit system being run by the banking industry and eventually abstaining the courts to intervene to balance the legal rights and duties amongst all the parties. Should the UCP have the status of law? Leading scholar Professor Ross Buckley says: â€Å"originally, the UCP was neither designed nor intended to be law. It was prepared as a set of standard terms to be incorporated by reference into letters of credit by those parties who chose to do so.† This has also been confirmed by the UCP in the preface of UCP 500, which states that the UCP is not legislation but a compilation of rules made by bankers for their own industry. Therefore there is a dispute as to whether the UCP is a code of the law, or just customary practices, or some mutually consented regulations relating to letters of credit. However in fact, UCP is the governing law of the letters of credit. The Scope of the Banks Duties Before analysing the wording of the disclaimers used, the scope of the duties undertaken by the banks involved must be identified. Whereas the type of credit and the documentary stipulations therein will usually have been negotiated by the commercial parties and included in their sales contract, the terms and conditions under which a bank undertakes to open a documentary credit will normally appear in the banks standard application form which the importer will be required to complete. Although the application would normally refer to the UCP, it is important to note that the provisions of the UCP would not automatically apply in English law if not expressly incorporated by the parties to the credit and, even if expressly incorporated, its provisions can be excluded, or modified by the express terms of the credit. The duty to issue an efficacious credit The importers failure to procure the issue of a documentary credit which conforms to the terms of the sales contract may be treated by the exporter as a breach of a condition precedent to his performance and a repudiation of the contract by the importer. Whether the applicant can sue the issuing bank in respect of its culpable failure to issue (or to issue in good time) a conforming and efficacious credit is, however, by no means clear. The duty to issue a conforming credit An initial problem arises where the applicant requires the issue of a confirmed credit, that is, a credit in which a second bank, normally in the beneficiarys country, adds its own independent undertaking, to pay against the stipulated documents, to that of the issuing bank. Is the issuing bank in breach of contract towards the applicant if it is unable to procure the confirmation? The answer must depend upon the issuers conduct on receiving the application from the applicant. The second aspect of the duty to issue a conforming credit raises the question of liability for the acts of other banks involved in the transaction. Clearly, if the issuing bank opens a credit which specifies documentation other than that called for by the applicant, then in the absence of a disclaimer it will be in breach of its contract with the applicant under the doctrine of strict compliance. The position should be the same where the issuing bank unreasonably delays issue of the credit so that the beneficiary incurs loss. A difficulty arises, however, when it is not the issuing bank itself which causes the error or delay in complying with the applicants instructions, but the issuers correspondent bank. The doctrine of privity of contract would appear to prevent contractual liability arising in this context. However, in any event, it appears that there is no reason for holding that, in the absence of a disclaimer; an issuing bank should not be liable for the consequences of errors by its correspondents. Duty to receive and examine documents The doctrine of strict compliance means that issuing banks which pay against non-conforming documents are in breach of their contractual obligations to the applicant. The issuer is not, however, a guarantor of the documents conformity; its duty is discharged by the exercise of reasonable care to ascertain that the documents comply on their face with the terms of the credit. Duty to make payment under the terms of the credit The party with the primary interest in enforcing the banks obligation to pay against conforming documents is the beneficiary although it is clear that this obligation is also owed to the applicant. Furthermore, any variation of the payment terms would be a clear breach of contract. Duties of correspondent banks In so far as the confirming bank gives an undertaking in exactly the same terms as the issuing bank, it clearly owes precisely the same duties to the beneficiary. However, since a confirming bank looks to the issuing bank alone for reimbursement, it may be prima facie unlikely that it owes any duty to the applicant, even where the applicant is paying the confirmation fee. There are, however, some judicial dicta which might support the recognition of such a duty. Bank’s risk under UCP (exemption clauses) Article 15 and 18 (b) of the UCP 500, limits the liability of the banks in a letter of credit transaction and which have almost made it a risk free transaction for the banks. Article 15 says: â€Å"Banks assume no liability to or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any document(s) or for the general and/or particular conditions stipulated in the document(s) or superimposed thereon, nor do they assume any liability or responsibility for the description, quantity, weight, quality, condition, packing, delivery, value or existence of the goods represented by any document(s) or for the good-faith or acts and/or omissions, solvency, performance or standing of the consignors, the carriers, the forwarders, the consignee or the insurers of the goods or any other person whomsoever.† Article 18(b) further states: â€Å"Banks assume no liability or responsibility should the instructions they submit not be carried out, even if they have themselves taken the initiative in the choice of such other bank(s).† The UCP 500 places the applicant-buyer in an absurdly vulnerable position through its disclaimer clauses. To some extent there is a lack of duties on the part of the bank to verify the authenticity of the documents. Hence it might not be wrong to say that albeit there is a waste increase in the use of letters of credit, does not signify that the UCP is fairly drafted. Letters of credit and its users It is also very important that whether all the parties to the letter of credit, particularly applicant-buyer are conscious about the presence of these exemptions, e.g. by providing a copy of these exemption clauses of the UCP or by giving a notice of these exemption clauses. It is a rule that to enforce an exemption clause, a reasonable notice should be given to the other party but in practice, buyers are assume to have the notice of the UCP and that they are familiar with the provisions of the UCP. Further, the application for the issuance of a letter of credit and the letter of credit document itself only contain a simple sentence: â€Å"Subject to UCP for Documentary Credits†, without any attachment of the provisions of the UCP or any notice of such exemption clauses. Hence it is debatable that why the courts do not look, while dealing with the cases relating to the letters of credit, that whether a reasonable notice has been given relating to the exemption clauses and do not interfere to balance the rights and duties of the parties to a letter of credit transaction? Chapter 3 Doctrine of strict compliance and independence principle It is a basic rule of the letter of the credit transaction and which is widely recognised that the letters of credit are transactions independent of the underlying contracts on which they are based. According to this principle, the issuer has no concern with the underlying contracts between buyer and seller. Its concern is with documents only, rather than the goods or any type of services. Obviously there are some doubts about this principle, i.e. to what extent this principle should be applied. Which some tome may cause injustice to the applicant under certain circumstances. Independence Principle Generally, letter of credit is a contract between the issuer and the seller of the goods, which is independent of the underlying contract between the seller and the buyer. The independence principle is mentioned in Article 3 and Article 4 of the UCP. Article 3 states: â€Å"Credits, by their nature, are separated transactions from the sales or other contract(s), even if any reference whatsoever to such contract(s) is included in the Credit.† Article 4 further says: â€Å"In credit operations all parties concerned deal with documents and not with goods, services and/or other performances to which the documents may relate.† From the very beginning independence principle governs letter of credit transactions and very clearly states that the credits are completely separate from their underlying transactions and the issuer makes payment depending on the conformity of the documents presented according to the terms and conditions of the credit without considering the performance of the underlying contract by the beneficiary. Rights and Duties in a Letter of Credit Transaction Rights and Duties in a Letter of Credit Transaction Introduction The letter of credit is the most commonly used method of payment for goods in international trade. This thesis highlights the imbalance of the rights and duties of the parties in a letter of credit transaction by emphasising deficiencies in the letters of credit system. In addition, on those areas where there is lack of justice and equity and which make the system of the letters of credit vulnerable for fraudulent activities. This thesis is structured in five chapters. First chapter after briefly discussing the structure of the letter of credit system, such as parties to the letter of credit transaction, kinds of letters of credit, step by step procedure of the transaction, different type of the documents used and the common defects in those documents, it also explains about the division of the risk under such a transaction and how the applicant’s risk has increased under UCP and very often the buyer is paying for the goods he had not contracted for. Second chapter after brief discussion of the drafting and interpretation of the UCP, explains about the reluctance of the courts to intervene in order to balance the rights and duties of the parties in a letter of credit transaction, status of the UCP, scope of the banks duties and in addition the disclaimer clauses under UCP. Chapter three explores the autonomy of the letters of credit, the doctrine of strict compliance and the ways in which the courts deal with documentary compliance. It further considers that overprotection of the â€Å"independence principle†, and the lack of â€Å"reasonable care† on the part of banks provides opportunities of fraud to the sellers to obtain payment without actually performing their duties to banks and buyers. Chapter four explains â€Å"fraud exception† to the autonomy principle in detail, the position of the fraud exception in England and the history of the English cases relating to the fraud. In addition it also examines the reasons for such an enormous increase in the number of cases relating to fraud. Finally, chapter five considers some of those methods, which can be used to avoid such an increase in fraud cases and also provides few suggestions to balance the rights and duties amongst all the parties to the letter of credit transaction. Chapter 1 Structure of a Letter of Credit Transaction Commercial letters of credit have been used for the centuries as a most common method of payment, in international trade. Letters of credit used in international transactions are governed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP). A commercial letter of credit is a contractual agreement between a bank (issuing bank), on behalf of one of its customers (buyer), authorizing another bank (advising or confirming bank), to make payment to the beneficiary (seller). The issuing bank, on the application of its customer (buyer), opens the letter of credit, and makes a commitment with the buyer to honour the credit, if the documents presented by the beneficiary are conforming to the terms and conditions of the credit. Thus, the issuing replaces the customer to make payment to the seller. Elements of a Letter of Credit An undertaking given by issuing bank to make payment Issuing bank gives undertaking on behalf of a applicant To pay a given amount of money to the seller On presentation of required documents under the letter of credit Within a specified time as provided by the letter of credit Documents must be in compliance to the terms and conditions of the letter of credit Documents must be presented at a specified place provided by the letter of credit Beneficiary Beneficiary is normally the provider of the goods or services and is entitled to payment as long as he can provide the conforming documents required by the letter of credit. The letter of credit is a distinct and separate transaction from the underlying contract (contract between seller and buyer). All parties deal in documents and not in goods. The issuing bank is not liable for the performance of the underlying contract between the buyer and seller. The issuing banks obligation to the buyer-applicant is to examine all documents to insure that they are in compliance with the terms and conditions of the credit. To get the payment it is for the beneficiary to provide all the required documents. If the seller-beneficiary conforms to the letter of credit, the seller must be paid by the bank. Issuing Bank Letters of credit only concerns with the documents, not with the goods, therefore the duty of issuing bank to pay to the beneficiary and than to be reimbursed from its customer will only be completed upon the completion of the terms and conditions of the letter of credit. Under the provisions of the Uniform Customs and Practice for Documentary Credits, the bank is entitled to have a reasonable time after receipt of the documents from the beneficiary, to examine the documents and then to make the payment. The issuing bank provides a guarantee to the seller that if the documents presented by the beneficiary are in compliance with the terms and conditions of the credit, then the bank will make the payment to the seller. Generally the documents presented include a commercial invoice, bill of lading or airway bill and an insurance document etc. Advising Bank An advising bank is usually a foreign correspondent bank of the issuing bank which advises the seller-beneficiary. Generally, the beneficiary wants to use a local bank to insure that the letter of credit is valid. In addition, the advising bank is responsible for sending the documents to the issuing bank. The advising bank has no other obligation under the letter of credit. Therefore, if the issuing bank does not pay the beneficiary, the advising bank is not obligated to pay. Confirming Bank At the request of the issuing bank, the correspondent bank may confirm the letter of credit for the seller-beneficiary and obligates itself to insure payment under the letter of credit. The confirming bank is usually the advising bank. There are two main types of Letters of credit: (1) Revocable (2) Irrevocable Revocable Letter of Credit Revocable letter of credit is not a commonly used type of the letters of credit. This type of letter of credit can be revoked by the issuing bank at any time, without notification to the beneficiary, for any reason. Such type of letter of credit can not be confirmed by the correspondent bank and the bank will act as an advising bank only. A revocable letter of credit can not be revoked after the presentation of the documents, if the documents are conforming to the terms and conditions of the letter of credit and the payment has been made. Irrevocable Letter of Credit Use of irrevocable letters of credit is very common in international trade. Irrevocable letter of credit can not be revoked or changed without the consent of the beneficiary. Issuing bank will make the payment to the seller, if the seller presents the documents complying with the terms of the credit, as agreed between seller and buyer. Such a letter of credit can only be changed with the permission of both buyer and seller. If it is not clear from the letter of credit that whether it is revocable or irrevocable, it automatically considers as irrevocable. Irrevocable letters of credit are of two kinds: Unconfirmed credit In case of unconfirmed letter of credit, advising bank does not confirm the credit to the seller and the issuing bank is the only party responsible for payment to the beneficiary. Advising bank will only pay to the seller after getting payment from the issuing bank and there is no risk for the advising bank. Confirmed credit In this type of credit, advising bank confirms credit to the seller. When the advising bank confirms that the documents presented are conforming to the terms of the credit, it will make the payment to the seller, and after that advising bank will contact with the issuing bank to get the payment. This type of letter of credit is commonly used, when the seller is unfamiliar with the issuing bank. Such a type of letter of credit is quite expensive because the banks have some liability. Step-by-step process In international trade as the buyer and seller are in different countries so when the buyer and the seller of the goods agree to conduct business, than because of the gap of time between delivery of goods and the payment, usually the seller wants a letter of credit as a guarantee of payment from the buyer. Than the buyer makes a request to his bank called the issuing to open a credit in the favour of the seller. at the request of the buyer, issuing bank issues a letter of credit in favour of the seller and forwards it to the corresponding bank called the advising or conforming bank., which is usually located in the seller’s country. Advising bank than either confirms the credit or not, depending upon the type of credit, and forward it to the seller. Seller than ships the goods and collects the documents required in order to meet the requirements of the letter of credit and finally to get the payment in time. Seller presents the required documents to the advising or confirming bank in order to get the payment in time. Advising or confirming bank examines the documents presented by the seller to check that whether they are conforming to the terms and conditions of the letter of credit. If the documents are in compliance, advising or confirming bank, in case of confirmed letter of credit, will make payment to the seller and will be reimbursed from the issuing bank and in case of unconfirmed letter of credit, advising or confirming bank will forward the documents to the issuing bank. Than the Issuing bank will, after examine of the documents, debit the buyers account if the documents are in compliance to the terms of the letter of credit. In the end, Issuing bank forwards the documents to the buyer. Most commonly used documents in a letter of credit transaction include: Commercial Invoice This includes description of the goods, their price, FOB origin, and name and address of the buyer and the seller. The buyer and seller information must be in compliance with the description provided in the letter of credit. Bill of Lading It is a document which shows the receipt of goods for shipment by a freight carrier. It is an evidence of the control of the goods and also acts as an evidence of the carriers obligation to transport the goods to their proper destination. Warranty of Title A warranty given by a seller to a buyer of goods that states that the title being conveyed is good. It is generally issued to the purchaser. Letter of Indemnity It is a letter specifically indemnifies the purchaser against a certain stated circumstance. Indemnification is generally used to guarantee that shipping documents will be provided in good order when available. Common Defects in the documents presented A discrepancy is some defect in the documents presented by the seller, which show their non-compliance with the terms of the letter of credit. Issuing bank can not change the terms and conditions of the letter of credit with out t he permission of the buyer. Therefore to avoid any delay in getting payment. Beneficiary should be careful in preparing the required documents. Common defects in the documents presented by the seller include: If the description of the goods is not consistent. There is some error in the insurance documents. If the draft amount is not equal to invoice amount. Loading and destination ports are not same as provided by the letter of credit. Merchandise description is not same as in the credit. If any of the documents required by the credit is not presented. Documents are generally inconsistent such as quality, etc. If the names of the documents required are not correct, as mentioned in the credit. Invoice is not signed as provided in the letter of credit. If prior to the presentation of the draft, Letter of Credit has expired. If the date mention in the bill of lading is different from the date stated in the credit. If there are some changes in the invoice which are not authorized by the letter of credit. In international sales, as the seller and the buyer are in different countries, there is a common problem of payment due to the difference of time between dispatch and delivery. Obviously, seller would like to receive payment for the goods when delivering them to the carrier and the buyer would prefer to delay the payment of the price until receipt of the goods. Therefore, a letter of credit solves this problem between the seller and the buyer. Generally, there are three separate transactions in a letter of credit transaction. The first is between a seller and a buyer, called an underlying transaction, by which the seller provides contracted goods to the buyer. The second transaction is between the buyer-applicant and the bank (issuer of the letter of credit), in which the bank issues a letter of credit to the seller-beneficiary. Finally, the letter of credit itself creates a relationship between the issuer and the beneficiary, in which, the issuer makes payment for goods upon the beneficiary’s presentation of the required documents, in accordance with the terms and conditions of the letter of credit as agreed between seller and buyer. The bank’s performance of payment is conditional on the delivery of conforming documents by the beneficiary. The banks are called issuers and are usually the applicant’s bank. Normally the issuing bank opens a letter of credit in its own name and requests its correspondent bank to notify the seller about the letter of credit. Sometimes, the issuing bank asks the correspondent bank not only to inform the seller of the issuing bank’s undertaking but also to add a confirmation. In this case, the credit is known as a confirmed credit and the correspondent bank as a confirming bank. The payment obligation of the issuing bank depends upon the beneficiary’s presentation of complying documents to the confirming bank or to any other nominated bank, in accordance with the terms and conditions of the credit. Under general practice, presenting â€Å"complying documents† means that they comply with the conditions of the credit â€Å"on their face†. From banking point of view, compliance â€Å"on their face† of the presented documents is sufficient. The â€Å"independence principle† (which will be discussed later) is the fundamental principle of the letter of credit system, which prohibits banks from looking beyond facial compliance of the documents, and therefore exclude whether or not there is actual performance by the seller-beneficiary. In fact, letters of credit system has emphasised the independence principle to such an extent that banks are ignoring the performance of the underlying contract very confidently. As a result, all the risk is on the honest buyers, who are sometime paying for goods that they had not contracted for. Importance of the research The primary purpose of the letter of credit system is to facilitate international trade, rather than to provide an opportunity to the banks to make profit. As the fraud is very common in these days, but UCP is not designed to prevent fraud. The number of frauds relating to the letters of credit has increased over the years. Buyers are particularly vulnerable to such practices under the letter of credit system. This situation shows that there is some ambiguity in the letter of credit system and a lack of balance between the rights and duties of the parties to a letter of credit transaction, which is being exploited very easily by fraudsters. Division of risk under a Letter of Credit Transaction As we have discussed above, a letter of credit transaction consists of three linked but independent contracts. The first step is that the buyer makes a contract with the seller for the sale of goods, called the underlying contract. Subsequently the buyer signs an application form requesting the bank to open a credit, which is an arrangement between the buyer and the bank. The third step is that the issuing bank informs the seller, who is the beneficiary of the letter of credit, of the credit and promises to pay against the stipulated documents provided the terms and conditions of the credit are met. The letter of credit allocates risk between the applicant and the beneficiary. By postulating a letter of credit, the beneficiary may greatly reduce the risk of not being paid and ultimately allowing the beneficiary of the letter to reallocate the risk of non-payment for delivered goods which do not conform to the underlying sale contract. Generally, banks are reluctant to dishonour a credit, since to do so may damage the bank’s reputation as a credit issuer. The cost of honour, however, falls on the honest applicant, not the bank. â€Å"If the beneficiary has breached the underlying transaction, payment under the credit to him will occasion loss, but that loss will not be the bank’s; it will be the applicant’s.† Increase in the applicant’s risk and decrease in the bank’s risk under UCP UCP is the governing law of the letters of credit, therefore there should be a balance regarding the rights and duties of the parties, but UCP contains rules that reduce bank risk. There is no provision asking for judicial intervention to compensate letter of credit parties in case of bank’s negligence. The provisions in favour of banks fall into two categories. The first provides sweeping immunity from liabilities that national legal systems may impose. Example of such a disclaimer is Article 15. Under Article 15, banks assume no liability for the genuineness, falsification or legal effect of any documents and therefore the issuer is immune from the liability for paying against forged documents, which on their face appear regular. Therefore, the payment by the issuing bank does not show that the buyer has received the goods, which he had contracted for. The security, which the beneficiary is getting under the letter of credit system is not the same with the security of the buyer. The second category of pro-bank provisions contains rules that set precise boundaries on what the banks must do, which reduces uncertainty about bank responsibility and provides clear guidance to bank employees. For example, the customer cannot stipulate non-documentary conditions of payment, and time limits on examination of documents are fixed rather than open-ended. In case of any loss, the buyer, which is the applicant for a credit, can take action against the seller for breach of contract or fraud, but has no right of action against the bank for bank’s negligence in examining the documents, which can be ineffectual for several reasons, such as insolvency of either the applicant or the beneficiary. Hence the burden of risk on the applicant is more than any party in a letter of credit transaction and in most of the cases, buyers are paying for the goods, they have not contracted for. Chapter 2 UCP and letters of credit Originally UCP has been drafted by the Banking Commission of the ICC, which was comprised of the representatives of the banking community, which shows the dominance of the banks and banking experts. Their dominance in UCP drafting, hints that in drafting UCP, ICC was acting as a private legislature. It looks that the rules contain in the UCP are much beneficial for the banks than any other party, and giving a limited chance to the judiciaries to interfere to protect customers from any careless behaviour of the banks. The authority to interpret the UCP rests in the ICC Commission on Banking Technique and Practice, which can apply these interpretations to solve the problems arising in any case. Because of wide publicity and distribution of commission’s answers, their interpretation can be considered as an official interpretation of the UCP. Commission can enhance, interpreting, and sometimes amend the provisions of the UCP. The banks which deal with the letters of credit, act upon these interpretations and any amendments. As in theory, commission is only answerable to ICC members, therefore the chances of any challenge to such interpretation is very low. Role of courts in balancing the rights and duties of the parties In Discount Records Ltd. v. Barclay Bank Ltd., the judge was reluctant to â€Å"interfere with bankers’ irrevocable credit and not least in the sphere of international banking†. The position is same in many other cases. The apparent reason for the reluctance of the judges to interfere looks that they are afraid from the threats of the banking experts that their decisions would have an unfavourable affect on international trade. The difficulties of the courts to balance the rights and duties of all parties to a letter of credit transaction have increased. In Mannesman Handel AG v. Kaunlaran Shipping Corporation, the Swiss bank argued that the bank was in rejecting the documents by the German company relying on the independence principle and the discrepancies appeared on the documents. The court was asked not to apply the good faith principle otherwise the court â€Å"would be calculated to undermine if not destroy the doctrine of strict compliance and to blur if not extinguish the distinction between transactions concerning goods and transactions concerning documents.† Normally the judicial decisions relating to the legal aspects of documentary credits base on either the express intentions of the parties or established business practice at the time, the parties entered in a contractual relationship. In cases where the UCP provisions are different from business practice, a court will apply the UCP if the UCP is incorporated in the contract of the parties. It shows that courts have assented to the entire documentary credit system being run by the banking industry and eventually abstaining the courts to intervene to balance the legal rights and duties amongst all the parties. Should the UCP have the status of law? Leading scholar Professor Ross Buckley says: â€Å"originally, the UCP was neither designed nor intended to be law. It was prepared as a set of standard terms to be incorporated by reference into letters of credit by those parties who chose to do so.† This has also been confirmed by the UCP in the preface of UCP 500, which states that the UCP is not legislation but a compilation of rules made by bankers for their own industry. Therefore there is a dispute as to whether the UCP is a code of the law, or just customary practices, or some mutually consented regulations relating to letters of credit. However in fact, UCP is the governing law of the letters of credit. The Scope of the Banks Duties Before analysing the wording of the disclaimers used, the scope of the duties undertaken by the banks involved must be identified. Whereas the type of credit and the documentary stipulations therein will usually have been negotiated by the commercial parties and included in their sales contract, the terms and conditions under which a bank undertakes to open a documentary credit will normally appear in the banks standard application form which the importer will be required to complete. Although the application would normally refer to the UCP, it is important to note that the provisions of the UCP would not automatically apply in English law if not expressly incorporated by the parties to the credit and, even if expressly incorporated, its provisions can be excluded, or modified by the express terms of the credit. The duty to issue an efficacious credit The importers failure to procure the issue of a documentary credit which conforms to the terms of the sales contract may be treated by the exporter as a breach of a condition precedent to his performance and a repudiation of the contract by the importer. Whether the applicant can sue the issuing bank in respect of its culpable failure to issue (or to issue in good time) a conforming and efficacious credit is, however, by no means clear. The duty to issue a conforming credit An initial problem arises where the applicant requires the issue of a confirmed credit, that is, a credit in which a second bank, normally in the beneficiarys country, adds its own independent undertaking, to pay against the stipulated documents, to that of the issuing bank. Is the issuing bank in breach of contract towards the applicant if it is unable to procure the confirmation? The answer must depend upon the issuers conduct on receiving the application from the applicant. The second aspect of the duty to issue a conforming credit raises the question of liability for the acts of other banks involved in the transaction. Clearly, if the issuing bank opens a credit which specifies documentation other than that called for by the applicant, then in the absence of a disclaimer it will be in breach of its contract with the applicant under the doctrine of strict compliance. The position should be the same where the issuing bank unreasonably delays issue of the credit so that the beneficiary incurs loss. A difficulty arises, however, when it is not the issuing bank itself which causes the error or delay in complying with the applicants instructions, but the issuers correspondent bank. The doctrine of privity of contract would appear to prevent contractual liability arising in this context. However, in any event, it appears that there is no reason for holding that, in the absence of a disclaimer; an issuing bank should not be liable for the consequences of errors by its correspondents. Duty to receive and examine documents The doctrine of strict compliance means that issuing banks which pay against non-conforming documents are in breach of their contractual obligations to the applicant. The issuer is not, however, a guarantor of the documents conformity; its duty is discharged by the exercise of reasonable care to ascertain that the documents comply on their face with the terms of the credit. Duty to make payment under the terms of the credit The party with the primary interest in enforcing the banks obligation to pay against conforming documents is the beneficiary although it is clear that this obligation is also owed to the applicant. Furthermore, any variation of the payment terms would be a clear breach of contract. Duties of correspondent banks In so far as the confirming bank gives an undertaking in exactly the same terms as the issuing bank, it clearly owes precisely the same duties to the beneficiary. However, since a confirming bank looks to the issuing bank alone for reimbursement, it may be prima facie unlikely that it owes any duty to the applicant, even where the applicant is paying the confirmation fee. There are, however, some judicial dicta which might support the recognition of such a duty. Bank’s risk under UCP (exemption clauses) Article 15 and 18 (b) of the UCP 500, limits the liability of the banks in a letter of credit transaction and which have almost made it a risk free transaction for the banks. Article 15 says: â€Å"Banks assume no liability to or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any document(s) or for the general and/or particular conditions stipulated in the document(s) or superimposed thereon, nor do they assume any liability or responsibility for the description, quantity, weight, quality, condition, packing, delivery, value or existence of the goods represented by any document(s) or for the good-faith or acts and/or omissions, solvency, performance or standing of the consignors, the carriers, the forwarders, the consignee or the insurers of the goods or any other person whomsoever.† Article 18(b) further states: â€Å"Banks assume no liability or responsibility should the instructions they submit not be carried out, even if they have themselves taken the initiative in the choice of such other bank(s).† The UCP 500 places the applicant-buyer in an absurdly vulnerable position through its disclaimer clauses. To some extent there is a lack of duties on the part of the bank to verify the authenticity of the documents. Hence it might not be wrong to say that albeit there is a waste increase in the use of letters of credit, does not signify that the UCP is fairly drafted. Letters of credit and its users It is also very important that whether all the parties to the letter of credit, particularly applicant-buyer are conscious about the presence of these exemptions, e.g. by providing a copy of these exemption clauses of the UCP or by giving a notice of these exemption clauses. It is a rule that to enforce an exemption clause, a reasonable notice should be given to the other party but in practice, buyers are assume to have the notice of the UCP and that they are familiar with the provisions of the UCP. Further, the application for the issuance of a letter of credit and the letter of credit document itself only contain a simple sentence: â€Å"Subject to UCP for Documentary Credits†, without any attachment of the provisions of the UCP or any notice of such exemption clauses. Hence it is debatable that why the courts do not look, while dealing with the cases relating to the letters of credit, that whether a reasonable notice has been given relating to the exemption clauses and do not interfere to balance the rights and duties of the parties to a letter of credit transaction? Chapter 3 Doctrine of strict compliance and independence principle It is a basic rule of the letter of the credit transaction and which is widely recognised that the letters of credit are transactions independent of the underlying contracts on which they are based. According to this principle, the issuer has no concern with the underlying contracts between buyer and seller. Its concern is with documents only, rather than the goods or any type of services. Obviously there are some doubts about this principle, i.e. to what extent this principle should be applied. Which some tome may cause injustice to the applicant under certain circumstances. Independence Principle Generally, letter of credit is a contract between the issuer and the seller of the goods, which is independent of the underlying contract between the seller and the buyer. The independence principle is mentioned in Article 3 and Article 4 of the UCP. Article 3 states: â€Å"Credits, by their nature, are separated transactions from the sales or other contract(s), even if any reference whatsoever to such contract(s) is included in the Credit.† Article 4 further says: â€Å"In credit operations all parties concerned deal with documents and not with goods, services and/or other performances to which the documents may relate.† From the very beginning independence principle governs letter of credit transactions and very clearly states that the credits are completely separate from their underlying transactions and the issuer makes payment depending on the conformity of the documents presented according to the terms and conditions of the credit without considering the performance of the underlying contract by the beneficiary.