Industrial Relations And Human Resource Management Finance Essay - Free Essay Example

Sample details Pages: 18 Words: 5269 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Abstract The aim of this paper is to explore and review some of the scholars research work on corporate governance and how it impacted the labour management. The paper examined various literature reviews on shareholders model of corporate governance and further explained different types of governance practices in the world in relation to employee management. The interest of investors is to maximize profit and minimize cost while that of employee is for consistent and increase in wages and salary. Don’t waste time! Our writers will create an original "Industrial Relations And Human Resource Management Finance Essay" essay for you Create order There are diverse views and opinions on the impact of corporate governance on labour management; some have adverse while some are favourable. We concluded that, the effect on labour management varies with the strength of labour. Keywords: Corporate governance, shareholders and labour management Introduction Corporate governance has successfully attracted the interest of the public because of its obvious importance and relevance to the economy and society at large. Although, the concept of corporate governance is poorly defined because it covers a large number of different economic phenomenon. Corporate governance has long been a subject of considerable interest and controversy, but debates and theories on this topic have become much more prominent in advance economies over the years. As a result, different people have come up with different definitions that basically reflect their special interest in the field. Corporate governance is the relationship among stakeholders in the process of decision making and control over firm resources. The three critical stakeholders are capital, labour and management. There are basically two different models of the corporate governance: the shareholder model and the stakeholder model. Shareholder model of corporate governance can be described as the formal system of accountability of senior management to shareholders while the Stakeholder model of corporate governance can be used to describe the network of formal and informal relations involving the corporation. The role of labour in corporate governance has been less of a focus but recently there is a growing need of bringing both corporate governance and labour 2 relations systems together. This study focuses on labour management and how the shareholder model of corporate governance impacts labour management. Literature review Corporate governance has been argued to have started from the recognition of the centrality of corporate enterprises for allocating resources in the economy. Corporate governance play a vital role in shaping the outcome of the economy through decisions such as investment, employment and trade, the process through which corporate revenues/returns are allocated impacts the performance of the economy as a whole (OSullivan, 2003). Corporate governance boarders around institutions that influence business corporations distribute their revenues and returns (OSullivan, 2003). The positive effect of corporate governance on different stakeholders ultimately is a strengthened economy, and hence good corporate governance is a tool for socio-economic development. The parties involved in corporate governance include the regulatory body (e.g. the Chief Executive Officer, the board of directors, management, shareholders and Auditors). Other stakeholders who take part are suppliers, employees, credit ors, customers and the community at large. Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance, OECD Principles of Corporate Governance (1999). Goodijk (2007) highlighted several theories in his research on how corporate governance has been affected: The agency theory is based on the separation of ownership and control and identifies the agency relationship where one party, the owner, delegates work to another party, the agent/management. The companys management is considered to operate on behalf of the principles but the agency may not always act in the best interests of the principal. The company is therefore seen as nexus of contracts. 3 The theory of transaction cost economics is focused on the company as a governance structure and an undertaking transactions (cost reductions) internally. The stakeholder theory takes account of a wider group of constituents instead of focusing on shareholders. The management is challenged to make the balancing act, to meet the pluralistic claims of all the different stakeholders. Stewardship theory as explained by Rienk refers to directors who are regarded as stewards to the companys assets and act in the best interest of shareholders and taking into account the environmental dependencies and uncertainties. Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed (OSullivan, 2003). The principal stakeholders are the shareholders, the board of directors, executives, employees, customers, creditors, suppliers, and the community at large. The major importance of corporate governance is to ensure the accountability of certain individuals in an organisation through mechanisms that try to reduce or the principal agent problem. Goodijk (2007) explained in his research that corporate governance focuses on three main areas: The functioning and quality of the board The functioning and quality of supervision The accountability to shareholder and stakeholder Corporate governance is a question of performance accountability (Demb and Neubauer, 1992). To improve the transparency, involvement and accountability of corporate governance, the Europeans emphasis on putting relationships and involving stakeholders while the Anglo Saxon countries (USA and UK) focusing on the shareholder value maximization. Corporate governance is one key way of improving microeconomic efficiency and focuses on the relationships and interactions between capital, management and labour (Maher and Andersson, 1999; Aguilera and Jackson, 2003). Aguilera and Jackson found out that despite that corporate governance is 4 concerned with the structure of rights and responsibilities among the parties with a stake in the firm yet there is still diversity of practices around the world nearly defies a common definition. In the UK and US, corporate governance is characterized by dispersed ownership where markets for corporate control, legal regulation and contractual incentives and key governance mechanisms. In continental Europe and Japan, blockholders like banks and families retain greater capacity to exercise direct control and, thus operate in a context with fewer market-oriented rules for closure, weaker managerial incentives, and greater supply of debt. Corporate Governance Model There are many different models of corporate governance around the world. These differ according to the variety of capitalism in which they are embedded. OSullivan (2003) explained the liberal model that is common in Anglo-American countries tends to give priority to the interests of shareholders. The coordinated model that one finds in Continental Europe and Japan also recognizes the interests of workers, managers, suppliers, customers, and the community. Each model has its own distinct competitive advantage. The liberal model of corporate governance encourages radical innovation and cost competition, whereas the coordinated model of corporate governance facilitates incremental innovation and quality competition (OSullivan, 2003). However, there are important differences between the U.S. recent approach to governance issues and what has happened in the UK. Maher and Andersson (1999) found out that in the United States, a corporation is governed by a board of directors, which has the power to choose an executive officer, usually known as the chief executive officer. The CEO has broad power to manage the corporation on a daily basis, but needs to get board approval for certain major actions, such as hiring his/her immediate subordinates, raising money, acquiring another company, major capital expansions, or other expensive projects. Some of the other duties of the board may include policy setting, decision making, monitoring managements performance, or corporate control. The board of directors is nominally selected by and responsible to the shareholders, but the bylaws of many companies make it difficult for all but the largest shareholders to have any influence over the makeup of the board Maher and Andersson (1999). 5 Codes of Good Governance Since the establishment of UK Cadbury Code in 1992, each country worldwide has introduced and revised corporate governance codes. The European countries use the principle based codes and the US Sarbanes Oxley Act uses the rules-based legislation (Goodijk, 2007). Generally there are sets of best practice recommendations regarding the behaviour within and the structure of the board, the information disclosure, transparency and accountability, the selection and remuneration of directors and the relationship with shareholders and the stakeholders. There are diversities in the European codes, nevertheless, Europeans codes represent certain characteristics that are fundamental to good corporate governance such as: how to increase shareholders influence, how to improve the board performance, how to take into account the other stakeholder interest. One of the European corporate governance codes is the OECD principles (OECD Principles of Corporate Governance, 1999). The OECD recognizes that one size does not fit all: there is no single model of corporate governance that is applicable to all countries. The OECD principles pay special attention to the minority shareholders rights. The OECD principles include on the principle the stakeholders in corporate governance. The principles state that the corporate governance framework should recognize the rights of stakeholders established by law or through mutual agreements and encourage active co-operation between corporations and stakeholders in creating wealth, jobs and sustainability of financial sound enterprises. Goodijk (2007) explained the difference between the Anglo-Saxon and European approach to corporate governance. In the Anglo-Saxon approach, the view of the company is instrumental while European approach view is institutional. Market-oriented with independent shareholders versus network-orientation Dispersed share-ownership versus high ownership concentration The outsider or the insider system The leadership culture versus countervailing powers 6 The conflict versus consensus orientation Short-term versus long-term results/relationships Principle-based versus rules-based solutions Focus on direct employee participation or representative involvement Corporate governance in Continental Europe can be characterized by the following issues; principle-based codes, diversity and tailor made solutions, a broad stakeholder approach, a strong network orientation and an inside system model, with more focus on the balancing act, the labour relations and the employees participation and getting consensus (Goodijk, 2007). Recent literatures show that there is an increasing trend towards more convergence on corporate governance issues: Increased basic shareholder rights Shareholders making more use of their right to vote More independence of outside directors within the board Having key board committees Paying attention to both share and stakeholders. Shareholders model: There is no single model of corporate governance. Governance practices vary not only across countries but also across firms and industry sectors. However, one of the most striking differences between countries corporate governance systems is in the ownership and control of firms that exist across countries. Systems of corporate governance can be distinguished according to the degree of ownership and control and the identity of controlling shareholders. Olivier (2000) explained that shareholders are the first stakeholder and they are individuals who own stock / shares in a company with the aim of making profit. If the company does well, they stand to make money based on how many shares they invested. However, if the company does badly, then the shareholder stands to lose his/her investment. The shareholder model explains the purpose of the corporation is to promote shareholder 7 value and to serve a wider range of interests. Shareholder model of corporate governance is known as the formal system of accountability of senior management to other shareholders. Shareholders model has a narrow view of relating investor with business manager on like the stakeholder model that takes a broader view of the firm. Olivier (2000) explained that shareholders are the first stakeholder and they are individuals who own stock / shares in a company with the aim of making profit. If the company does well, they stand to make money based on how many shares they invested. However, if the company does badly, then the shareholder stands to lose his/her investment. The shareholder model explains the purpose of the corporation is to promote shareholder value and to serve a wider range of interests According to the shareholder model, the main objectives of any firm is to maximize shareholder wealth through effective and efficient allocation of resources in a productive and dynamic ways, this is to say, that the objective of the firm is to maximize profits (Maher and Anderson, 1999). Shareholders cannot achieve these objectives in isolation without the full involvement of business manager. Therefore, managers and directors have an implicit obligation to ensure that firms are run in the interests of shareholders. This is an underline problem of corporate governance which the principal-agent relationship arise from the separation of beneficial ownership and executive decision-making. The bane of this problem is the conflict of interest between the shareholders and managers. Investors are interested in maximizing shareholder value; managers may have other objectives such as maximizing their salaries. According to Maher and Anderson (1999), the interests and objectives of the princi pal (the investors) and the agent (the managers) differ when there is a separation of ownership and control. Since the managers are not the owners of the firm they do not bear the full costs, or reap the full benefits, of their actions. Corporate Governance and Labour Management It should be recalled that there is an interaction between capital, management and labour (Aguilera and Jackson, 2003). The omission of labour in most literatures of corporate governance mirrors weak employee involvement in the United States relative to that in economies such as Germany or Japan where the participation of labour is politically important and most times a basis of competitive advantage (Blair Roe, 1999; Parkinson Kelly 2001; Aguilera Jackson, 2003). The role of employees in corporate governance is assumed to relate to their ability to 8 influence corporate decision making and control firms resources. There are some rules which limit managerial authority: shop floor-level job control, collective bargaining, and labour law (Marsden, 1999; Tilly Tilly, 1998; Aguilera Jackson, 2003). Aguilera and Jackson (2003) came up with a model that focuses on two vital dimensions that defines the relationship of an employee to making corporate decisions, these dimensions are: à ¢Ã¢â€š ¬Ã‚ ¢ Employees strategies of internal participation versus external control this dimension explain how employees describe their interests in relation to corporate decision making. The external control refers to situations where management has the right to decision making. This is where the employees seek to control the firms decision externally by assuming threats such as strikes. The representation of an employee is independent of management and preserved in strict separation from cooperative institutions that engage labour in the decision making of the firm. Employees also can participate in the firms decision making internally through internal channels of decision making to co-determine management actions (Streeck, 2001). This participation of employees does not stop the authority of managers but aims at democratizing decisions. Internal participation tends to have strong integrative functions, encouraging consensus and cooperation in the implementation of decisions. Portable versus firm-specific skills when the employee skills are portable across the firms or when investments are low, employees may favour exit over voice in response to grievances. On the contrary, when employee skills are firm-specific, their greater dependence on the firm makes the option to exit more difficult (Williamson, Watcher, Harris, 1975). When employees invest in firm-specific skills thus create incentives to exercise voice in how those skills are formed and deployed. Employees may have interest in the safeguarding the organization and their job security. Therefore, similar to the liquidity or commitment of capital, skills influence the degree to which employees have a stake in the firm (Aguilera Jackson, 2003). Aguilera and Jackson (2003) explained that the extent of which the internal participation/external control and portable/firm-specific skills within the firm is shaped by three sets of institutions. These are: the firm-level representation rights given to workers, the organisation of unions and the institutions of skills formation. 9 1. Firm-level representation rights it is said that labour struggled to gain collective rights to representation of firm decisions. The recognition of the right to organise is the most fundamental of these, giving employees individual rights to voluntarily elect their own representation and compelling management to bargain over a prescribed range of issues. Nevertheless, representation rights differ greatly in their strength and scope which ranges from rights to information, consultation and codetermination. Such rights also vary according to the type of decision at hand and the source enacting the rights. The representation rights influence labours relation to corporate governance. An institutional setting with weak representation rights does not provide channels to represent employees within firms decision making. Institutional setting characterized by strong representation rights such as Germany, provide formal internal channels to give labour a voice in the firms decision making by providing legal rights to information, consultation and codetermination in key decisions. Employee ownership is an additional means of establishing representation rights, but through the alternate channel of property rights (Aguilera and Jackson, 2003). The organisation of unions research explains that union organisation will shape the relation of labour to the firm. The interest of employees is defined in relation to their individual and collective identities, as well as according to how their interests are organised and institutionalized. Union organisation is seen is three models: class, occupation and enterprise (Dore, 1973;). Regarding the corporate governance, these models influence employee orientations toward internal participation in corporate decisions and external control. The class based unions such as political and industrial unions tend to favour strategies of external control. The industrial unions are skeptical in participating in institutions that blur the boundaries of management and labour. They tend to favour centralized collective bargaining that restricts the discretion of individual firms through external control (Aguilera and Jackson, 2003). Unions that are craft based with particular sets of qualifications tend to support external strategies of control because their interest in linked to uniform compensation of their particular skill/professional 10 qualifications across enterprises. In an organisation, craft unions may break away from representation with the firm and follow their members collective interest irrespective of the fate of the individual firm. In contrast, enterprise-based unions recruit members among employees within a particular firm and support internal participation. Basically, it union is aimed at the preservation of long-term employment contracts and the regulation of internal promotion prospects. Countries with predominantly class-based and craft-based unionism, labour tends to pursue strategies of external control while countries with predominantly enterprise-based forms of unionism, labour tend to pursue strategies of internal participation (Aguilera and Jackson, 2003). Skill formation this affect corporate governance because of the portability or firm-specific nature of skill investments influences the relation of employees to the firm. In the United States, on-the-job training and markets is used to generate employee skills (Brown et al., 1997). Skill formation outside the firm makes the firm less dependent on employees and hence, employees will have less capacity to influence firm decisions through internal channels. In the high skilled segment of the U.S. economy, firms draw on the portable skills of professional employees whose skills were acquired outside the firm. In countries like Germany and Japan, high skilled production workers are greatly generated. In Japan, training is a part of a firm investment in firm-specific skills which reward employees with elaborate internal promotion systems (Culpepper Finegold, 1999; Thelen Kume, 2002). In Germany, training system is rooted in corporatists arrangements among employer associations, industr ial unions and the State. Firm participates in occupational training in order to create widely certified skills that are portable across the firm. However, skill formation outside the firm will make the firm less dependent on employees and hence, employees will have less capacity to influence firm decision through internal participation (Aguilera and Jackson, 2003). 11 Impact of shareholders model of Corporate Governance on labour management Gospel and Pendleton (2003) discuss different sources of corporate governance influence on labour management. These sources are types of finance, objectives of finance providers and the intervention rights and practices associated with different forms of finance (Gospel and Pendleton, 2003: 558). Corporate governance is closely related to finance. It was further highlighted that there are different sources of finance: internal funds, debt and equity. Howard and Andrew (2005) stated that firms most times rely on internally generated funds; but from time to time firms have had to raise capital from external source. Debt is considered a constraint but were large and long-term, debt may draw lenders into a close relationship with the management (Stiglitz, 1985). Share equity can also be considered as a limitation-when the shareholders are many and small, investors may compensate for weakness in their relationship with mangers by exerting pressure through market trading (Howard and Andrew , 2005). The shareholder model of corporate governance is said to have adverse effects on labour management In Anglo-American economies, labour is weak and labour suffers from moves to reduce workforces. The attempt of firm to enhance shareholder value has led to the damaging impacts on labour. This is because the capacity of firms to achieve real increases in return is highly limited (Gospel and Pendleton, 2003). Time-frame is another way in which labour management suffers pressure. The time frame of managerial decisions depends on the different types of shareholder model. The required payback period for employees investments is longer in internal systems than outside systems. The nature of business strategies, the importance ascribed to financial factors in decision making, the approach to securing managerial and employee commitment and the degree of co-operation with other firms all these have a way of influencing the decisions of management positively or negatively (Gospel and Pendleton, 2003). They contribute to the variations in decision making of corporate governance. According to Maher and Andersson (1999) the shareholder model corporate governance is primarily concerned with finding ways to align the interests of managers with those of investors, with ensuring the flow of external funds to firms and that financiers get a return on their investment. An effective corporate governance framework can minimise the agency costs and hold-up problems associated with the separation of ownership and control. 12 Maher and Andersson (1999) highlighted three types of mechanisms that can be used to align the interests and objectives of managers with those of shareholders: Managers are to carry out efficient management by directly aligning managers interests with those of shareholders e.g. Executive compensation plans, stock options, direct monitoring by boards, etc. Another method involves the strengthening of shareholders rights so shareholders have both a greater incentive and ability to monitor management. This approach enhances the rights of investors through legal protection from expropriation by managers e.g. Protection and enforcement of shareholder rights, prohibitions against insider-dealing, etc. To use indirect means of corporate control such as that provided by capital markets, managerial labour markets, and markets for corporate control e.g. take-overs. Maher and Andersson (1999) further explained that the ownership concentration is so prevalent as the dominant organisational firm, this is because it is one way of resolving the monitoring problem. According to the principle-agent model, due to the divergence of interests and objectives of managers and shareholders, one would expect the separation of ownership and control to have damaging effects on the performance of firms. Therefore, one way of overcoming this problem is through direct shareholder monitoring via concentrated ownership. The difficulty with dispersed ownership is that the incentives to monitor management are weak. Shareholders have an incentive to free-ride in the hope that other shareholders will do the monitoring. This is because the benefits from monitoring are shared with all shareholders, whereas, the full costs of monitoring are incurred by those who monitor (Maher and Andersson, 1999). These free-rider problems do not arise with concentrated ownership, since t he majority shareholder captures most of the benefits associated with his monitoring efforts. Therefore, for the closely held corporation the problem of corporate governance is not mainly about general shareholder protection or monitoring issues. The problem is said to be more one of cross shareholdings, holding companies and pyramids, or other mechanisms that dominant shareholders use to exercise control, often at the expense of minority investors (Maher and Andersson, 1999). The protection of minority shareholders becomes more critical in this case. Maher and Andersson (1999) claim that one of the issues that arise in this context is how do policy makers develop reforms that do not disenfranchise majority shareholders while at the same time protect the interests of minority shareholders. 13 Another analysis of the shareholder approach by Maher and Andersson (1999) is that the analytical focus on how to solve the corporate governance problem is too narrow. The shareholder approach to corporate governance is primarily concerned with aligning the interests of managers and shareholders and with ensuring the flow of external capital firms. Nevertheless, shareholders are not the only ones who make investments in the corporation. The competitiveness and ultimate success of a corporation is the result of teamwork that embodies contributions from a range of different resource providers including investors, employees, creditors, suppliers, distributors, and customers. Corporate governance and economic performance will be affected by the relationships among these various stakeholders in the firm. According to Howard and Andrew (2005), there have been debates about corporate governance whether or not the nature of corporate governance exists exclusively or even primarily to promote the interest of shareholders, whether the maximization of returns for shareholders leads to losses for other stakeholders, and whether recent trends have increasingly creates unfair remuneration for senior executives. As a result, debates of corporate governance have taken place in business and political circles in many countries including United States, United Kingdom, France, Germany, Italy, Netherlands and Japan over the past ten years, and most have embarked on programmes to reform aspects of corporate governance (Howard and Andrew, 2005). In time past, there have been various debates about changes in employment and industrial systems. In countries such as the United States and United Kingdom, there has been a clear increase in job insecurity, goring pay inequality, and erosion of benefits such as final salary pensions (Gospel and Pendleton, 2003). This has attributed to a decline in employee say at work and claim of managerial rights. Howard and Andrew explained further that in Germany, there have been which debates centres around whether a system of employee voice through works councils at the workplace and collective bargaining at the industry level can continue to exist in a context where financial pressures on firms have intensified and where some argued a need for major changes in corporate governance. In Japan also, the system of lifetime employment is said to be under great risk, pay is being driven by market forces, and effective employee voice mechanisms are weakening (Howard and Andrew, 2005). In his framework, theories have concluded that the financing and governance of the firm and the management of labour interrelated (Gospel and Pendleton, 2003). 14 Howard and Andrew (2005) states that the management of labour covers a set of major decisions and resulting outcomes. These decisions cover three main areas: work relations, employment relations and industrial relations. Employment relations deal with the arrangements governing such aspects of employment as recruitment, training, job tenure and reward systems. Work relations concern the way work is organized and the deployment of workers around technologies and production processes. Industrial relations is defined to cover the voice aspirations of employees and resulting institutional arrangements, such as joint consultation, work councils, and collective bargaining (Howard and Andrew, 2005). The following further explains the implication of shareholder model on labour: Labour interest: Labour will only protect their interest which is wages certainty and job security. Labour will support any investment decision that will sufficiently maintain current and future cash flow to prevent the wage cut and any staff redundancy. Howard and Andrew (2005) argue that Labour is primarily concerned with maintaining current and future cash flows sufficient to prevent wage or benefits cuts The new ideas and initiative might not be embraced, since every employee are risk averted and they might not have the spirit of entrepreneur like an investor . Any investment that looks uncertain or highly risky might be voted out by an employee. The possibility of embracing low risk investment that will translate into low growth and development so far is secured will be gladly supported by labour. In Germany, the representation of both financiers and labour management provides more balance between the two interests. Long-term employment relationship: The shareholders model of corporate governance has an impact on labour relationship with the organisation, because of the sense of recognition and the perception of the corporation as social institute especially in US up until the 1970s. In Olivier (2000) study, he argued that the participation of employees in corporate governance systems can be found in many countries and corporations throughout the world. Examples include: Right to consultation. This is where employees must be consulted on certain management decisions. This right increases transparency of management decisions and allows employee opinion to improve the asymmetry of information between management and the market 15 ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Duties of board members to consider stakeholder interests. This right reinforces accountability by protecting stakeholders Right to nominate / vote for supervisory board members. In many cases employee participation on the board is mandated. This right creates a check and balance system between management and the supervisory board, which in turn creates the perception of greater fairness Compensation/privatization programs that make employees shareholders, thereby empowering employees to elect the supervisory board, which, in turn holds management responsible There are some problems of corporate governance which some countries encounter; these include: a dearth of relevant corporate information, including information on directors supervisory boards of directors struggling to exercise proper oversight over management a lack of independent auditing systems management voting shares on behalf of shareholders annual meetings held without sufficient notification time In order to solve some of these problems of corporate governance Olivier Frmond (2000) came up with a reform process and emphasised on its importance. The reform process needs a champion that is, stakeholder group that is deeply interested in the long term health of the company and has the right to speak out to management on improving the corporation. The reform process also needs to provide incentives for change. Improvements in corporate governance standards could benefit employee shareholders in improving long term prospective health of company, safeguarding jobs and they stand to gain as shareholders if the corporation increases in value. The reform process must also be governed by clear rules, these rules must be enforced. 16 Conclusion Studies have shown the different theories of corporate governances in the Anglo Saxon and European countries (USA and UK). Corporate governance is ensuring all stakeholders are represented and employee is a stakeholder so are suppliers, consumers, communities. All these entities dont have to be on the board but all decisions must favour all the stakeholders. The conflict of interest between the investor and employee is are inevitable point in our discussion. The shareholder model of corporate governance is said to have both favourable and adverse effect on labour management. The major importance of corporate governance is to ensure the accountability of certain individuals in an organisation. The shareholders model strikes the balance between the business owner, management and employee but give more protection to labour. The aim of this study has been to explain the importance of corporate governance and how he shareholder value impacts labour management. An aspect of this analysis explains on how the firm and its management emphasizes on management powers and decision-making and its impact on labour. It has also been noted that employee shareholders could seek representation on the supervisory board and can play an active role in strengthening corporate governance systems. Empowering employees as shareholders will also help to ensure that the basic principles of corporate governance are promoted. The effect of corporate governance varies with the strength of labour. Labors real power and resources is determined by how much influence he has or corporate governance has over him. 17

Case study of potential liability in the law of tort - Free Essay Example

Sample details Pages: 11 Words: 3160 Downloads: 5 Date added: 2017/06/26 Category Law Essay Type Case study Tags: Act Essay Tort Essay Did you like this example? Introduction In this paper, I will advise Druid Sons Ltd as to its potential liability in the law of tort, specifically in regard to the losses and injuries caused to David and Percy, respectively, by the discharge of excess chemical fumes from its waste treatment plant; and, more generally, in regard to potential claims from nearby residents and businesses in regard to the interference caused to their TV, broadband and mobile phone reception. While it is likely that each of these potential categories of claim would be brought in the tort of private nuisance[1], it should be noted that this tort has developed into two separate categories, defined by the nature of the damage suffered, each with its own particular legal requirements. Before one can advise on which category should apply in any given case, it is first necessary to understand the historical and, to some extent, public policy context of this development: Historically, the tort of private nuisan ce was considered to be a strict liability tort. Don’t waste time! Our writers will create an original "Case study of potential liability in the law of tort" essay for you Create order However, during the Victorian era, there was growing concern that the strict liability nature of this tort would interfere with the industrialization process[2]. Therefore, in the case of St Helens Smelting Company v Tipping (1865)[3] a distinction was introduced between the approach which should be adopted in cases where à ¢Ã¢â€š ¬Ã…“the alleged nuisance produces material injury to [a] property,[4]à ¢Ã¢â€š ¬Ã‚  and the approach which should be adopted when the nuisance complained of involves à ¢Ã¢â€š ¬Ã…“personal inconvenience and interference with oneà ¢Ã¢â€š ¬Ã¢â€ž ¢s enjoyment, oneà ¢Ã¢â€š ¬Ã¢â€ž ¢s quiet, oneà ¢Ã¢â€š ¬Ã¢â€ž ¢s personal freedom [or] anything that discomposes or injuriously affects the senses or the nerves[5]à ¢Ã¢â€š ¬Ã‚  In the former case, the tort of private nuisance was to be considered a strict liability tort; whereas, in the latter case, the Court, when determining whether or not to impose liability, was deemed entitled to consult such factors a s the reasonable residential expectations[6] and also the personal sensitivities of the complainant. With this development in mind, let us now turn to examine the likelihood of David and Percy being able to bring successful claims against Druid Sons in the tort of private nuisance, and also the likelihood of claims being brought by other residents for interference to their TV, broadband and mobile phone reception: David v Druid Sons in the tort of private nuisance: The first thing to note is that David will only be able to bring a claim against Druid Sons if he possesses a proprietary interest in the land in question (i.e. the land on which the grass was being grown)[7]. On the facts, there is no indication that David does not possess such an interest. In regard to which branch of the tort will apply in this case: As per our earlier analysis, because the damage suffered by David is material in nature, in that its extent does not depend upon his own preferences and/or sensitivities, the strict liability branch of the tort of private nuisance will be applicable, and it is therefore irrelevant whether or not the Druid Son recycling plant existed before David commenced using his land for rearing Jersey cows[8]. In regard to proving that the damage suffered was actually caused by the excess chemical discharge in question: So long as the existence of this excess discharge can be proved on the balance of probabilities and also that the chemicals in question are likely to interfere with the health of livestock, if ingested, then the Court will not require David to prove that it was this chemical discharge which caused his Jersey cows to become ill. This damage will likely be presumed in accordance with the principle handed down in the case of Fay v Prentice (1845)[9]. In regard to David being able to satisfy the test of remoteness applicable to the tort of private nuisance: In the case of McKinnon Industries Ltd v Walker [1951][10] it was held th at damage caused to crops, by the excess emission of Sulphur Dioxide, from a neighbouring industrial plant, was not too remote a type of damage to be deemed actionable in this tort. In my opinion, if this type of damage is to be considered actionable in the tort of private nuisance, then so too should the damage arising as a foreseeable and direct result of crops becoming contaminated in this way: Where grass crop is being grown for the purpose of feeding livestock then, if one accepts that the damage to these crops is actionable, then it follows that damage to the livestock as a result of their eating these crops will also be deemed actionable by the Courts, although only to the extent that this damage has affected the value of the land[11]. In regard to the defences available to Druid Sons: It is unlikely that it will be able to rely upon the defence of statutory authority, even if it has complied with its statutory obligations under the relevant environmental regulatory instr uments, unless it can be shown that the excess emissions complained of were an unavoidable result of the licensed industrial activities being undertaken[12]. In this case, the excess emissions could have been prevented, presumably, by employing a higher capacity fume collection system. It will also be impossible for Druid Sons to rely upon the defence of twenty yearsà ¢Ã¢â€š ¬Ã¢â€ž ¢ prescription, because this would require evidence that the plant has been emitting excess amounts of chemical compound for a continuous period of twenty years, which is not the case, as the excess emissions complained of were à ¢Ã¢â€š ¬Ã‹Å"unexpectedà ¢Ã¢â€š ¬Ã¢â€ž ¢ and a result of a à ¢Ã¢â€š ¬Ã‹Å"particularly busy period of workà ¢Ã¢â€š ¬Ã¢â€ž ¢. In conclusion, it is likely that David will be able to bring a claim against Druid Sons in the private tort of nuisance; although the damages available to him will be limited to the damage caused to his the value/ amenity of his land. In this reg ard, he will not be able to recover the cost of his veterinary bills via the tort of nuisance, but will be entitled to some compensation for the temporary (or permanent) loss of the amenity of his land, presuming that he had to relocate the cows to another field, or decontaminate the land in order to restore its utility. In order to recover these specific veterinary costs, it will be necessary to bring a concurrent claim in the tort of negligence. David v Druid Sons in the tort of negligence: While there will be no difficulty establishing a duty of care, in light of the physical proximity of the parties[13], because the emissions in question were à ¢Ã¢â€š ¬Ã‹Å"unexpectedà ¢Ã¢â€š ¬Ã¢â€ž ¢, it might be possible for Druid Sons to argue that they were not in breach of this duty because there was no way that any waste plant, however competent, would have predicted these effects. If the Court is satisfied that the plant did adhere to all relevant professional standards, it is highly unlikely that a claim for negligence brought by David would be successful[14]. However, if the excess emissions could have been predicted as a result of accepting a larger than usual amount of work, then it is likely that Druid Sons will be considered to have acted in breach of its duty of care towards David. However, in order to claim damages for the veterinary costs, David must prove that, on the balance of probabilities, his cows would not have required treatment à ¢Ã¢â€š ¬Ã‹Å"but for[15]à ¢Ã¢â€š ¬Ã¢â€ž ¢ the negligence of Druid Sons. The result of this enquiry will depend upon expert testimony. Presuming that factual causation can be established, the final element of the tort of negligence which must be satisfied is the test for remoteness of damage. The appropriate test in such cases is one based upon factual assessments of reasonable foreseeability[16]. I see no problem here: In the case of Stewart v West African Terminals Ltd [1964][17] it was held that à ¢ â‚ ¬Ã…“it is not necessary that the precise concatenation of circumstances should be envisagedif the consequence was one which was within the general range which any reasonable person might foreseeand anticipate.à ¢Ã¢â€š ¬Ã‚  In conclusion, presuming that David will be able to prove factual causation on the balance of probabilities, he will likely be able to bring a successful claim in the tort of negligence to recover the costs associated with the treatment of his cows. Percy v Druid Sons in the tort of private nuisance for the damage caused to his crops: The major difference between Davidà ¢Ã¢â€š ¬Ã¢â€ž ¢s claim in the tort of private nuisance and that which may be brought by Percy is the fact that Percyà ¢Ã¢â€š ¬Ã¢â€ž ¢s land is several miles away from the plant whereas Davidà ¢Ã¢â€š ¬Ã¢â€ž ¢s land is immediately adjacent to it. Therefore, even if the Courts presume damage in accordance with the principle espoused in the case of Fay v Prentice (1845)[18], ther e may be difficulty in proving that the damage in question was reasonably foreseeable. After all, the decision in the case of McKinnon Industries Ltd v Walker [1951][19] was made in regard to damage caused to crops on a neighbouring farm. This assessment will depend upon evidential considerations, such as the likelihood of emissions travelling several miles, the degree of dissipation which would likely have occurred over that distance and how these factors ought to affect the reasonable foreseeability of the kind of damage suffered by Percy. Presuming that the test for foreseeability can be satisfied on the balance of probabilities, then Percyà ¢Ã¢â€š ¬Ã¢â€ž ¢s claim in this regard will likely be successful and he will be able to recover the losses sustained to his land[20]. Percy v Druid Sons in the tort of private nuisance for personal injury: Generally, damages for personal injury are not recoverable in the tort of private trespass. However, in the Hunter case it wa s held that a claimant can recover for his loss of amenity (of his land only) as a result of the person injury in question, for example if the value of the land has decreased as a result of it being dangerous to occupy. In this case, because the excess emission causing the damage was a one-off à ¢Ã¢â€š ¬Ã‹Å"unexpectedà ¢Ã¢â€š ¬Ã¢â€ž ¢ event, it will be difficult for Percy to argue that the private nuisance has caused the value of his land to significantly decrease in this way. Percy v Druid Sons in the tort of negligence for personal injury: So long as it can be shown that emissions of the kind in question are capable of travelling several miles and still causing damage at that distance, then the analysis provided earlier in regard to Davidà ¢Ã¢â€š ¬Ã¢â€ž ¢s claim against Druid Sons in the tort of negligence will be equally applicable to Percyà ¢Ã¢â€š ¬Ã¢â€ž ¢s claim. If these same requirements are satisfied, then Percy will be entitled to claim damages for his pain s uffering and loss of amenity [not only as a result of the attack itself but also in regard to the distress associated with recalling/ remembering that event[21]] and also for his pecuniary losses [as a result of not being able to work for a period of 2 weeks[22]]. If there is any chance that Percy might again have to take time off work, as a direct result of his original attack, then he may also be granted a provisional award[23]. A claim by local residents and businesses whose TV, broadband and mobile phone receptions are interfered with by the general omissions of the Druid Sons Plant: While it has been held at law that the interference, by a building, of TV, broadband or mobile phone reception cannot amount to a nuisance in the law of tort[24], this does not necessarily apply to interference caused by emissions from a building. After all, such damage may substantially affect the amenity of land; for example, it would be more difficult to sell a house which was unable to re ceive TV signals at that same price as a similar property which was able to receive TV signals. In this regard, presuming that the degree of interference is significant, then the test of substantiality as handed down in the case of Sedleigh-Denfield v Oà ¢Ã¢â€š ¬Ã¢â€ž ¢Callaghan (1872)[25] would likely be satisfied. However, the defence of proscription would be able to defeat such claims if the plant has been interfering with such signals for a continuous period of twenty years and this interference has never been challenged successfully[26]. Likewise, if Druid Sons can prove that all such plants necessarily interfere with these signals, then any claims arising could be defeated on the basis of statutory authority[27]. If neither of these defences apply, then it is possible that Druid Sons could face multiple claims by nearby residents and businesses in the tort of private nuisance. Conclusions: In regard to a potential claim by David in the tort of private nuisanc e: It is likely that such a claim would be successful and that David could recover a sum of money in damages for the loss of amenity which he suffered as a result of the material damage caused to his land. In regard to a potential claim by David in the tort of negligence: Presuming that David can prove, on the balance of probabilities, that his cows would not have required veterinary attention but for the excess toxic emissions released for the Druid and Son waste plant, then his claim will likely be successful and the company will be liable to meet the costs of the said treatment. In regard to a potential claim by Percy in the tort of private nuisance for the damage caused to his crops: So long as it can be proved that it is capable for emissions to cause damage over a distance of several miles, then it is likely that such a claim would be successful and that Percy could recover a sum of money in damages for the loss of amenity which he suffered as a result of the material da mage caused to his land. In regard to a potential claim by Percy in the tort of private nuisance for the personal injuries which he has suffered: Such a claim will not be possible. In regard to a potential claim by Percy in the tort of negligence for the personal injuries which he has suffered: Such a claim would likely succeed so long as it can be proved that Percy would not have suffered his asthma attack but for the excess toxic emissions released for the Druid and Son waste plant and also that this type of damage was a reasonable foreseeable consequence of excess emissions being released. In regard to claims arising from local residents and businesses in regard to the interference caused to their TV, broadband and mobile reception by the plantà ¢Ã¢â€š ¬Ã¢â€ž ¢s emissions: If the plant has been interfering with these signals for a period of at least twenty years or such interference is a unavoidable consequence of operating such a plant, then such claims would likely fa il. Otherwise, such claims would be likely to succeed. References: St Helens Smelting Company v Tipping (1865) 11 H.L.C. 642 Brenner, J. (1973) Nuisance Law and the Industrial Revolution. 3 Journal of Legal Studies 403. Harlow, C. (2005) Understanding Tort Law. Sweet and Maxwell Publishing. Sturges v. Bridgeman (1879) 11 ChD 852 Miller v Jackson [1977] QB 966 Bliss v Hall (1838) 4 Bing NC 183 Southwark LBC v Mills [2001] 1 AC 1 Fay v Prentice (1845) (1845) 1 CB 828 McKinnon Industries Ltd v Walker [1951] 3 DLR 577 Hunter v Canary Wharf [1997] 2 All ER 426 Winfield and Jolowicz (2002) Winfield and Jolowicz on Tort [W.V.H. Rogers (ed.)]. Sweet and Maxwell Publishing. Allen v Gulf Refining Ltd. [1981] AC 1001. Vancouver General Hospital v McDaniel (1934) 152 LT 56 Barnett v Kensington and Chelsea Hospital Management Committee [1969] 1 QB 428. Rigby v Hewitt (1859) 5 Ex. 240, at 243. Stewart v West African Terminals Ltd [1964] 2 Lloydà ¢Ã¢â€š ¬Ã¢â€ž ¢s Rep 371 Sedleigh-Denfield v Oà ¢Ã¢â€š ¬Ã¢â€ž ¢Callaghan (1872) 8 Ch App 8 Phelan v E. Cumbria HA [1991] 2 Med LR 419. Hussain v Lancaster CC [1999] 4 All ER 125 Hulley v Silversprings Bleaching Co [1922] 2 Ch. 281. Footnotes [1] Brenner (1973) pp 403-4 [2] As Harlow (2005) p84 writes: à ¢Ã¢â€š ¬Ã…“If landowners were entitled to protect the rural uses and amenities of their land through a tort of strict liability, progress, and particularly industrial progress, could be brought to a standstill.à ¢Ã¢â€š ¬Ã‚  [3] 11 H.L.C. 642 [4] Lord Chancellor, Lord Westbury in St Helens Smelting Company v Tipping (1865) 11 H.L.C. 642, cited by Harlow (2005) p85 [5] Ibid. [6] For example, what a resident would reasonably consider a private nuisance in Berkley Square (an highly residential and affluent area in Central London) may not be considered so for residents living in Bermondsey (an highly industrial area outside the centre of London). This was a point made by Lord Justice Thesiger in the case of Sturges v. Bridgeman (1879) 11 ChD 852 at 865. It was this reasoning that was controversially employed by Lord Denning in the case of Miller v Jackson [1977] QB 966, to argue that a claim of private nu isance brought by the neighbouring resident to a village cricket ground should be defeated; namely, that because he chose to move into a property that was adjacent to a cricket ground, he ought reasonably to have expected his property to be damaged by high-flying balls, from time to time. However, because the damage in question was material, the majority of the Court of Appeal felt bound to follow the decision handed down in the case of Bliss v Hall (1838) 4 Bing NC 183, in which it was held that coming to nuisance is no defence in cases which involve material damage, i.e. damage which exists to the same extent regardless of the claimantà ¢Ã¢â€š ¬Ã¢â€ž ¢s personal preferences and sensitivities. If the type of damage in the Miller case had been non-material discomfort, for example arising from the noise of the balls being struck, then Lord Denningà ¢Ã¢â€š ¬Ã¢â€ž ¢s reasoning would have been appropriate. For an example of a case where such reasoning was employed successfully to defe at a claim of private nuisance, see Southwark LBC v Mills [2001] 1 AC 1. [7] Hunter v Canary Wharf [1997] 2 All ER 426 [8] See the analysis provided in footnote 6 in regard to the application of the principle espoused in the case of Bliss v Hall (1838) 4 Bing NC 183. [9] (1845) 1 CB 828. As Winfield and Jolowicz (2002) p 534 write: à ¢Ã¢â€š ¬Ã…“If damage were not presumed, it might be difficult to establish that any one act had caused it.à ¢Ã¢â€š ¬Ã‚  [10] [1951] 3 DLR 577. [11] See the dictum of Lord Lloyd in the Hunter case [1997] 2 All ER 426, at 442. [12] Allen v Gulf Refining Ltd. [1981] AC 1001. [13] As Winfield and Jolowicz (2002) p 141 note: à ¢Ã¢â€š ¬Ã…“An occupier is under a duty to take steps to remove a hazard on his land which threatens neighbouring propertyà ¢Ã¢â€š ¬Ã‚  [14] Vancouver General Hospital v McDaniel (1934) 152 LT 56, at 57. [15] Barnett v Kensington and Chelsea Hospital Management Committee [1969] 1 QB 428. [16] Rigb y v Hewitt (1859) 5 Ex. 240, at 243. [17] 2 Lloydà ¢Ã¢â€š ¬Ã¢â€ž ¢s Rep 371, at 375 [18] (1845) 1 CB 828. As Winfield and Jolowicz (2002) p 534 write: à ¢Ã¢â€š ¬Ã…“If damage were not presumed, it might be difficult to establish that any one act had caused it.à ¢Ã¢â€š ¬Ã‚  [19] [1951] 3 DLR 577. [20] We have presumed that Percy has a proprietary interest in his land, as per the decision in the case of Hunter v Canary Wharf [1997] 2 All ER 426. [21] Phelan v E. Cumbria HA [1991] 2 Med LR 419. [22] Winfield and Jolowicz (2002) p769 at 22.23 [23] Ibid. [24] Hussain v Lancaster CC [1999] 4 All ER 125 [25] (1872) 8 Ch App 8 [26] Hulley v Silversprings Bleaching Co [1922] 2 Ch. 281. [27] Allen v Gulf Refining Ltd. [1981] AC 1001

Promotion Of Frozen Food Organization - 1100 Words

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Pit Bull Research Paper free essay sample

Pit bulls are a Misunderstood Breed Pit bulls are the most misunderstood dog breeds in the world. When people hear the word pit bull they automatically think of dogs fighting and attacking. When people say pit bull theyre usually referring to a range of breeds and, often, a mixed-breed dog. (Lawrence, C Louisville Magazine Feb 2007) People think they are a very dangerous breed of dog. Because of this, some areas do not allow pit bulls and breeds like them. Pit bulls are the leading culprit of dog bites in America, but on the other hand, they are the gentlest dogs people will ever meet. The National Canine Temperament Testing Association tested 122 breeds of dog and Pit bulls placed the 4th highest with a 95% passing rate. (http://atts. org Feb 2012) With this fact it can only be how the dog is raised. People who own Pit bulls should be obligated to train their dog well. With any dog you need to train it so the owner has the upper hand. Owners need to know that they have to be dominant and for their dog to be obedient towards their orders. The dog comes second to themselves. Pit bulls are one of the most gentle of the breeds. Pit bulls are notable therapy dogs who visit patients that are recovering from emotional trauma. Pit bulls are also used for their service in sniffing out drugs on the borders due to their sense of smell being stronger than any other breed. These dogs are great family dogs and were babysitters in the 19th and the early 20th centuries. American Pit Bull Terriers were introduced into the United States of America during World War I and World War II. The purpose of the creation of the Pit Bull was to deliver messages back and forth across the battlefield during battle. Pit Bulls were first bred to bait bulls as a sport back in the late 19th and early 20th centuries as well, but soon became used as house pets due to their friendliness towards people. They were also known as great babysitters because of their intuition to protect their loved ones. These facts in themselves should open up people’s eyes to the Pit Bull breed not being an aggressive breed simply because they history proves that they had become great pets. A known fact to share is that Theodore Roosevelt owned a pit bull while he was president and his dog was a great sidekick for him in office. His dog provided safety for him, and not just because their dog was fierce, it was because he knew that specific dog could defend, be trained well, and become obedient. Owning a pit bull in today’s society has one of two reactions, they are adored or they are terrifying. The myths and horror stories that people say are why many fear them. They do not have â€Å"lock jaw† like many seem to think. Lock jaw is when a dog bites down on something and can’t let go. A vast majority of the population is known to believe that they have a killer instinct that does not stop, which is entirely not true. One cannot believe everything one reads or hears. There are two sides to every story, yet in this case, there are two sides to every breed. Pit bulls are like any other dog, they have to be trained and if trained right, they can be great family pets. When a pit bull falls in the hands of a bad owner than that is when you may have a problem. It’s easiest to understand this way; Suppose a child has physically abusive parents, they’re either going to grow up believing that harming someone is the only way to teach a lesson, or become skittish towards unfamiliar surroundings. It’s very similar to a dog’s life. They’re known to be physically damaging because they, themselves are physically damaged, because they’re â€Å"tough. † It all makes sense if it’s looked at from every angle of perspectives. Training a dog is not an easy thing, but dogs need extensive training so there will be fewer incidents. It is the concept of nature versus nurture. To this day, there are no facts about this either but both sides have great points and there is no set truth – but everyone seems to have an opinion. â€Å"An unneutered male pit bull is 2. times more likely to bite then a neutered male. In addition, male pit bulls are 6. 2 times more likely to bite then female pit bills. † In a study evaluating canine temperament, 82% of dogs received a passing score, 86. 8% of those dogs where American pit bull terrier (1800PetMeds. com Feb. 2012). There are ways to avoid incidents when in contact with these animals. When appr oached by a pit bull always remain calm, approach the dog slowly from the side not from the back. Do not provoke the dog always ask the owners to pet the dog first. If an aggressive dog approaches you do not panic, give the dog firm commands like sit, stay, and easy, then back away slowly. When owning a pit bull socialize the dog with people and other animals, get them familiar with animals and people including children. Isolated dogs can become vicious and dangerous so be cautious when in contact with a not so friendly dog. (Skloot, R Aug 2007 Prevention Vol. 59, Issue 8 Pgs. 196-198) Banning a breed, which the technical words are breed specific legislation, is not a good idea. Putting a ban on pit bulls is a less than great idea because people will continue to own pit bulls and hide them or even abandon their dog(s) and leave them to die. The irresponsible owners should deal with heavier fines and possibly jail time and this might scare these owners into training their pit bull properly. There is no proven fact that banning pit bulls will cut down on the number of bites. Not every bull type is a killer so banning bull types is not a good idea. There are many different bull types and it is hard to choose which ones are dangerous. Most cities do not allow â€Å"pit bull breeds,† but why is it that a dog with 10% pit bull in it and 90% Labrador in it should be banned? There are also many apartment complexes that do not allow pit bulls, or other certain breeds of dogs, this is dog discrimination. There are many stories of pit bull dogs doing great things but for some reason, the bad stories are the ones people remember. Dog lovers need to do more to help this breed work towards a better reputation. Dog discrimination is a real thing; People can search for it online. There have also been many cases where certain breeds, namely pit bulls, are not allowed at certain dog parks. This is not politically or socially right. Pit Bulls were born to be great helpers and family pets – they are loyal, independent, friendly and lovable pets. Any pit bull owner will explain how wonderful they are with children, other pets and just about anyone. A friend and current pit bull owner, Sandy Sweeney mentioned â€Å"My dog, Sargent, is my best friend. I feel safe when he is around and know that he would never hurt a soul. He is wonderful with my son and the most loyal animal. I would be the first person to tell anyone how awesome pit bulls are as pets. † (S. Sweeney, October 2012) There are numerous articles online as well stating that pit bulls are great dogs and there bad reputations need to change and are dishonest. Overall, there are many stories – good and bad – describing the temperament of pit bulls but at the same time, there are many stories – good and bad – describing dog stories as well. Although there are some facts that Pit Bulls re the leading cause of dog bites in America, no one can simply use that to say that Pit Bulls are bad dogs and deserve a bad reputation. It comes down to nature vs. nurture and if you raise and train a dog well, any breed, people will see an amazing, wonderful creature who is loyal and with a happy temperament. In conclusion the pit bull is a misunderstood, gentle giant that people need to take the time and get to know. The reas on why this paper was written is so people have the knowledge when dealing with this type of dog. There are irresponsible dog owners out there that don’t care about the actions of their dog. This causes the dogs to have a reputation that no good pit bull owner wants their dog to have. As was stated before, banning pit bulls is a dangerous move to make because there will most likely be more animal cruelty acts upon these gentle beasts. References (http://atts. org Feb 2012) (Lawrence, C Louisville Magazine Feb 2007) From UOP (Skloot, R Aug 2007 Prevention Vol. 59, Issue 8 Pgs. 196-198) From UOP (S. Sweeney, October 2012) (1800PetMeds. com Feb. 2012)