МЕЖРЕГИОНАЛЬНАЯ
АКАДЕМИЯ УПРАВЛЕНИЯ ПЕРСОНАЛОМ
ПРАКТИКУМ
ПО ДЕЛОВОМУ
АНГЛИЙСКОМУ ЯЗЫКУ
Учебно-методическая разработка
Киев 2003
ББК 81.2АНГ-923
П69
Рецензенты: Б. Н. Ажнюк, доктор филологических наук, ведущий
научный сотрудник института языкознания НАНУ
им. О. О. Потебни.
Б. А. Нечипоренко, кандидат филологических наук.
Одобрено Ученым советом Межрегиональной Академии
управления персоналом (протокол № 2 от 23.02.2000)
Практикум по деловому английскому языку: Учебн.-метод.
П69 разработка/ Сост. Е. В. Гринько, И. С. Бахов, Т. И. Вощинина,
И. В. Редзюк, Г. Н. Кондрашова, Н. О. Старкова, И. Н. Тулен-
кова, Л. А. Люлька.
Под общей редакцией И. С. Бахова., Е. В. Гринько.
Второе издание “Практикума по деловому английскому языку”
представляет собой исправленное, переработанное и дополненное издание.
Дополнения подготовлены Е. В. Гринько, И. С. Баховым, И. В. Редзюк, Т.
И. Вощининой, Л. А. Люлькой.
Практикум состоит из 9 разделов с лексическими комментариями к
текстам, заданиями на закрепление прочитанного материала. Материал
разработки состоит их текстов различной степени сложности и рассчитан
на дифференцированный подход в обучении деловому английскому языку.
Для студентов вузов и широкого круга лиц, желающих изучать и
совершенствовать знания по деловому английскому языку.
ББК 81.2АНГ-923
© Е. В. Гринько, 2003
© Я. С. Уласик (дизайн обложки), 2003
© Межрегиональная Академия
ISBN 966-608-015-X
управления персоналом (МАУП), 2003
Введение
Практикум представляет собой второе исправленное, перерабо-
танное и дополненное, издание учебно-методической разработки
“Практикум по деловому английскому языку”,созданного коллек-
тивом кафедры романских и германских языков МАУП.
Практикум предназначен для студентов, обучающихся эконо-
мическим специальностям, владеющим английским языком в объе-
ме средней школы и продолжающих изучение языка на неязыко-
вых факультетах экономики в университетах, институтах бизнеса,
экономических колледжах в качестве дополнительного пособия к
программному материалу.
Второе издание практикума ставит своей целью развитие и
совершенствование навыков поискового и просмотрового чте-
ния для извлечения необходимой информации по актуальным про-
блемам профессиональной деятельности. С этой целью подобраны
тексты широкого профиля из оригинальных источников (газеты,
журналы, пособия, справочники и учебники), сгруппированные по
следующим разделам:
1.“Правоведение: коммерческое и трудовое право”(сост.
И. Н. Туленкова)
2.“Бухгалтерский учет и аудит” (сост. И. В. Редзюк)
3.“Кадровый менеджмент” (сост. Е. В. Гринько, Г. Н. Кондра-
шова)
4.“Маркетинг. Экономика и управление сбытом”(сост.
Е. В. Гринько, Н. О. Старкова Бахов И. С.)
5.“Банковское дело” (сост. И. С. Бахов)
6.“Финансы. Финансовый менеджмент” (сост.Т. И. Вощинина)
7.“Психология.” ( сост. Е. В. Гринько)
8.“Социология” (сост. Л. А. Люлька)
9.“Связи с общественностью” (сост. Е. В. Гринько)
Ряд составителей внесли некоторые поправки, изменения и до-
полнения в свои главы, приняв во внимание замечания и рекомен-
дации к первому изданию. Дополнились текстовым материалом, лек-
сическими и грамматическими заданиями разделы “Banking” (Бахов
И. С.), “Bookkeeping and auditing ассоunting ” (Редзюк И. В.),
“.inance. .inance management” (Вощинина Т. И), “Marketing,
Economics and distribution management.” (дополн. Бахов И. С., Ред-
зюк И.В.), новые разделы “Sociologу”(Люлька Л. A.), “Public
Relations” (Гринько E.B.).
Тексты сопровождаются лексическими комментариями и зада-
ниями, направленными на развитие коммуникативных умений и
навыков, их можно использовать в разном порядке в зависимос-
ти от поставленной цели.
Общая редакция второго издания выполнена Е.В.Гринько,
Баховым И.С.
Составители будут признательны за высказанные замечания,
рекомендации и пожелания по данному практикуму.
Unit 1
LEGAL SCIENCE:
COMMERCIAL AND INDUSTRIAL LAW
ПРАВОВЕДЕНИЕ:
КОММЕРЧЕСКОЕ И ТРУДОВОЕ ПРАВО
1.1. Types of .ederal Courts (Типы федеральных судов)
1.2. Special Courts (Суды специальной юрисдикции)
1.3. Constitutional Courts (Конституционные суды)
1.4. District Courts (Окружные суды)
1.5. Judicial Review (Право на пересмотр судебного дела)
1.6. The American Legal System I (Юридическая система Америки)
1.7. The American Legal System II (Юридическая система Америки)
1.8. Department of Justice (Министерство юстиции)
1.9. Department of Labor (Министерство труда)
1.10. Department of Commerce (Министерство торговли)
1.11. Rights that Employees Demand (Права, которые требуют слу-
жащие)
1.12. .alse and Deceptive Advertising (Обманчивая и фальшивая рек-
лама)
1.13. Three ways to protect your ideas: Copyrights, Trademark,
and Patent (Три способа защититься: авторское право,
товарный знак, патент)
1.14. The Governmental Environment of Business (Государство как
среда для бизнеса)
1.15. Contracts (Контракты)
1.16. Breach of Contract (Нарушение контракта)
1.17. Property transactions (Операции с собственностью)
1.18. Bankruptcy (Банкротство)
1.19. Current .ederal Taxes (Современные федеральные налоги)
1.20. Bananas Can be Dangerous: A Study of a Court Suit
(Бананы могут быть опасны. Исследование одного из судеб-
ных процессов)
1.1. Types of .ederal Courts
Beneath the Supreme Court, Congress has created two distinct types
of federal courts: 1) constitutional courts and 2) special courts.
The constitutional courts are the federal courts that Congress has
formed under Article III, to exercise “the judicial power of the Uni-
ted States”. They are sometimes called the “regular courts”. Together
with the Supreme Court, they now include: the Courts of Appeals, the
District Courts, and the Court of International Trade.
The special courts do not exercise the broad “judicial power of the
United States”. Rather, they have been created by Congress to hear cases
arising out of certain of the expressed powers given to Congress in Ar-
ticle I. They hear a much narrower range of cases than those which may
come before the constitutional courts.
The special courts are sometimes called the “legislative courts”. To-
day, they include the Court of Military Appeals, the Claims Court, the
Tax Court, the various territorial courts, and the courts of the District
of Columbia.
The Supreme Court
The Supreme Court of the United States is the only court specifi-
cally created in the Constitution. It is made up of the Chief Justice of
the United States, whose office is also established by the Constitution,
and eight Associate Justices.
Jurisdiction. The Supreme Court has both original and appellate
jurisdiction. Most of all, however, it is an appellate tribunal. Most of the
cases it hears come to it on appeal from the lower federal courts and
from the State supreme courts.
Article III, Section 2 spells out two classes of cases which may be
heard by the High Court in its original jurisdiction: 1) those to which
a State is a party, and 2) those affecting ambassadors, other public mi-
nisters, and consuls.
Congress cannot enlarge upon this constitutional grant of original
jurisdiction.
If Congress could do so, it would in effect be amending the Con-
stitution. But Congress can implement the constitutional provision, and
it has. It has provided that the Court shall have original and exclusive
jurisdiction over: 1) all controversies between two or more States; and
2) all cases against ambassadors or other public ministers (but not con-
suls). But the Court may take original jurisdiction over any other case
covered by the broad wording in Article III, Section 2.
Vocabulary
regular court — суд общей юрис-
High Court — Высокий суд, ко-
дикции
торый входит в состав Вер-
Court of Appeals — апелляцион-
ховного суда
ный суд
Supreme Court — Верховный суд
District Court — окружной суд
Chief Justice — Председатель
Court of International Trade — суд
Верховного суда
по вопросам международной
Associate Justice — член Верхов-
торговли
ного суда
Court of Military Appeals — воен-
original jurisdiction — юрисдикция
но-апелляционный суд
суда первой инстанции
Claims Court — претензионный
appellate jurisdiction — апелляци-
суд
онная юрисдикция
Legislative Court — суд, образо-
appellate tribunal — апелляцион-
ванный законом Конгресса
ный суд
Tax Court — налоговый суд
1.2. Special Courts
The special courts are often called the legislative courts. They are the
federal courts Congress has set up to exercise jurisdiction only in certain
cases — cases dealing with particular subjects that fall within the
expressed powers of Congress. That is, these courts have not been set up
under Article III, and they do not exercise “the judicial power of the
United States”.
The United States Claims Court
The United States cannot be sued, by anyone, in any court, for any
reason, without its consent. It may be taken to court only in those cases
in which Congress has declared that the Government is open to suit.
Originally, any person with a claim against the United States could
secure redress (satisfaction of the claim, payment) only by an act of
Congress. In 1855, however, Congress set up a special court, the Court
of Claims, to hear these pleas. It did so acting under its expressed power
to pay the debts of the United States. Congress restructured the Court
of Claims — as the United States Claims Court — in 1982.
The Court now has 16 judges. They hold trials — hear claims for
damages against the Government — throughout the country. Those claims
they uphold cannot in fact be paid until Congress appropriates the money
(which it does almost as a matter of course).
Appeals from the Court’s decisions may be carried to the Court of
Appeals for the .ederal Circuit.
The Territorial Courts
Acting under its power to “make all needful rules and regulations
respecting the territory …... belonging to the United States”, Congress has
created courts for the nation’s territories. Today these territorial courts
sit in the Virgin Islands, Guam, and the Northern Mariana Islands (in
the Pacific Trust Territory). They work in much the same way as the
local courts in the 50 States. (There is a regular federal District Court
in Puerto Rico.)
The Courts of the District of Columbia
Acting under its power “to exercise exclusive legislation in all cases
whatsoever, over such District ...… as may ...… become the seat of the Gov-
ernment of the United States”, Congress has set up a judicial system for
the nation’s capital. Both the federal District Court and the Court of
Appeals for the District of Columbia hear many local cases as well as those
they try as constitutional courts. Congress has also established two local
courts, much like the courts in the States: a Superior Court, which is the
general trial court, and a Court of Appeals.
The Court of Military Appeals
Acting under its power “to make rules for the government and re-
gulation of the land and naval forces”, Congress created the Court of
Military Appeals in 1950. It has a chief judge and two associate judges,
appointed by the President and Senate for 15-year terms.
The Court is sometimes called the “GI Supreme Court”. It is the
court of last resort in dealing with offenses against military law.
The United States Tax Court
Acting under its power to tax, Congress established the Tax Court
in 1969. It has 19 judges, one of whom serves as chief judge. Each of these
judges is named by the President and Senate for a 12-year term.
The Tax Court hears civil — not criminal — cases involving disputes
over the application of the tax laws. Most of its cases, then, are gene-
rated by the Internal Revenue Service and other Treasury agencies.
Vocabulary
special court — суд специальной
to uphold — удовлетворять (жа-
юрисдикции
лобу)
to be sued — быть привлеченным
general trial court — суд первой
к ответственности в судеб-
инстанции
ном порядке
.ederal Circuit — федеральный
to take to court — отдавать под
окружной суд
chief judge — главный судья
суд
law suit — судебный процесс; дело
associate judge — судебный засе-
plea — иск
датель
to hold a trial — проводить судеб-
ный процесс
1.3. Constitutional Courts
Jurisdiction
The term jurisdiction may be defined as the authority of a court to
hear (to try and to decide) a case.
Under Article III the federal courts have jurisdiction over a case
either because of 1) the subject matter or 2) the parties involved in
the case.
Subject matter. In terms of subject matter, the federal courts may
hear a case if it deals with:
1) the interpretation and application of a provision in the Constitution
or in any federal statute or treaty; or
2) a question of admiralty or maritime law.
Any case which falls into either of these categories can be brought
in the proper federal court.
Parties. A case comes within the jurisdiction of the federal courts if
any of the parties (one of the litigants) in the case is:
1) the United States or one of its officers or agencies;
2) an ambassador, consul, or other official representative of a foreign
government;
3) a State suing another State, or a citizen of another State, or a
foreign government or one of its subjects;
4) a citizen of one State suing a citizen of another State;
5) an American citizen suing a foreign government or one of its
subjects;
6) a citizen of one State suing a citizen of that same State where both
claim land under grants from different States.
Any case in the above categories can be brought in the proper fe-
deral court.
All of those cases which are not heard by the federal courts are within
the jurisdiction of the States’ courts.
The State courts hear by far the larger number of court cases in
this country.
Still more must be said on the federal courts’ power “to say the law”.
Exclusive and Concurrent Jurisdiction. In several of the categories of
cases which we have just listed, the federal courts have exclusive juris-
diction. That is, those cases can be heard only in the federal courts. .or
example, a trial for a federal crime cannot be heard in a State court, it
must be held in a federal District Court.
Many cases may be tried in either a federal or a State court, how-
ever. That is, the federal and State courts have concurrent jurisdiction
over them. Cases involving citizens of different States are fairly common
examples of the type. They are known in the law as cases in diverse ci-
tizenshi p.
Congress has provided that the federal District Courts may hear cases
in diverse citizenship only if the amount of money in each case is over
$10,000. In these cases the plaintiff may bring the suit in the proper
State or federal court, as he or she chooses. If the case is brought be-
fore the State court, the defendant may have it moved to the federal
District Court.
Original and Appellate Jurisdiction. A court in which a case is heard
first-hand is said to have original jurisdiction over it. A court which
hears a case on appeal from a lower court has appellate jurisdiction.
In the federal court system, the District Courts have only original
jurisdiction and the Courts of Appeals have only appellate jurisdiction.
The Supreme Court has both.
The Other Constitutional Courts
There are two other constitutional courts today.
The Court of International Trade. The Trade Court was originally
created as the Board of United States General Appraisers in 1890. That
body became the Court of Customs in 1926, and it was renamed by
Congress in 1980.
The Trade Court now has nine judges, one of whom is its chief judge.
It hears civil cases arising out of the tariff and other trade-related laws.
Its judges sit in panels of three and often hold trials at such major ports
of entry as New Orleans, San .rancisco, Boston, and New York.
Appeals from decisions of the Trade Court are taken to the Court of
Appeals for the .ederal Circuit.
The Court of Appeals for the .ederal Circuit. Congress created the
Court of Appeals for the .ederal Circuit in 1982. It established the new
tribunal especially to centralize — and so speed up — the handling of
appeals in certain kinds of civil cases. To that end, this Court, unlike
the 12 other federal Courts of Appeals, has a nationwide jurisdiction.
It hears appeals from several places. Many of its cases come from the
Trade Court and others from the Claims Court (one of the special courts).
It also hears appeals in certain cases decided by any of the 91 District
Courts around the country — those involving patents, trademarks, or
copyrights. Then, too, it takes cases that arise out of the administrative
rulings made by the International Trade Commission, the Patent and
Trademark Office (in the Department of Commerce), and the Merit
Systems Protection Board.
The Court of Appeals for the .ederal Circuit has 12 judges — and
appeals from their decisions may be carried to the Supreme Court.
Vocabulary
to try a case — рассматривать
subject matter — предмет судеб-
(расследовать) судебное дело
ного разбирательства
to decide a case — выносить ре-
to bring a suit in a court — открыть
шение по делу
судебное дело; вынести иск
на судебное разбирательство
litigant — сторона в судебном раз-
plaintiff — истец, истица
defendant — ответчик, подсуди-
бирательстве
мый, обвиняемый
to claim smth — претендовать на
что-то (заявлять право на
diverse citizenship — разное граж-
что-либо)
данство сторон в деле
exclusive jurisdiction — исключи-
appraiser — таксатор (оценщик)
тельная юрисдикция
panel — состав присяжных (су-
concurrent jurisdiction — одновре-
дей)
менная юрисдикция (дей-
appeal — апелляция
ствующая совместно)
1.4. District Courts
The United States District Courts are the federal trial courts. They
now handle over 200,000 cases a year — some 90 percent of all of the
federal case load.
The District Courts were set up by Congress in the Judiciary Act of
1789. There are now 91 of them. The 50 States are divided into 89 ju-
dicial districts, with one court in each district. There is also a District
Court in the District of Columbia and another in Puerto Rico.
Each State forms at least one federal judicial district. The larger, more
populous States are divided into two or more districts — because of the
greater amount of judicial business arising in them, of course.
At least one judge is assigned to each district, but many have seve-
ral. Thus, New York is divided into four judicial districts; and one, the
United States Judicial District for Southern New York, now has 27 judg-
es. All told, 507 judges now preside over the 91 federal District Courts.
Cases tried the District Courts are most often heard by a single judge;
but certain cases may be heard by a three-judge panel.
Jurisdiction. The District Courts have original jurisdiction over most
of the cases heard in the federal courts. Clearly, then, they handle many
different kinds of cases. They hear criminal cases ranging from bank
robbery, kidnapping, and mail fraud to counterfeiting, tax evasion, and
treason. They try civil cases arising under the bankruptcy, postal, tax,
labor relations, public lands, civil rights, and other laws of the Unit-
ed States. The District Courts are the only federal courts that regularly
use grand juries (to indict) and petit juries (to try) defendants.
Cases decided in the District Courts do not often go further in the
judicial process. But they may be appealed to the Court of Appeals in that
judicial circuit. In a few instances, they may be taken directly to the Su-
preme Court.
The Courts of Appeals
The Courts of Appeals were formed in 1891. They were intended to
relieve the Supreme Court of much of the burden of hearing appeals
from the District Courts. There were so many appeals that the High
Court was then three years behind its docket.
There now 12 Courts of Appeals. The United States is divided into
11 judicial circuits. There is a Court of Appeals for each of those circuits
and also one in the District of Columbia.
Altogether, 132 circuit judges sit on these appellate courts. In addi-
tion, a Justice of the Supreme Court is assigned to each of them. Take
the United States Court of Appeals for the Seventh Circuit, for example.
The Seventh Circuit covers three States: Illinois, Indiana, and Wisconsin.
The court has nine circuit judges, and Supreme Court John Paul Stevens
is also assigned to the circuit. The court sits in Chicago. As another: the
.ifth Circuit encompasses three States: Louisiana, Mississi ppi, and
Texas. Its Court of Appeals has 13 judges, plus Associate Justice Byron
R. White. It holds its sessions in a number of different cities within the
circuit.
Each of the Courts of Appeals usually sits in panels of three judges.
Once in a while, to hear an important case, a court will sit en banc —
that is, with all of the circuit judges participating.
Jurisdiction. The Courts of Appeals have only appellate jurisdiction.
Most often, their cases come from the District Courts within their cir-
cuits. They hear cases appealed from the United States Tax Court and
from the territorial courts, as well. They also hear appeals from the de-
cisions of several federal regulatory agencies — from such quasi-judicial
agencies as the Interstate Commerce Commission, the Civil Aeronau-
tics Board, and the .ederal Trade Commission.
The Courts of Appeals now handle about 25,000 cases a year. Their
decisions are final — except in those (very few) cases the Supreme Court
agrees to hear on appeal.
Vocabulary
to handle a case — рассматривать
treason — государственная измена
petit jury — малое жюри
дело
grand jury — большое жюри
trial court — суд первой инстан-
ции
to indict — обвинять по обвини-
judicial district = judicial circuit —
тельному акту
судебный округ
docket — досье судопроизводства
(книга записей)
kidnapping — похищение людей с
целью получения выкупа
circuit judge — окружной судья
counterfeiting — фальшивомонет-
en (in) banc — в полном составе
ничество
quasi-judicial — квазисудебный
tax evasion — уклонение от упла-
final decision — окончательное
ты налогов
решение
1.5. Judicial Review
Courts have the power of judicial review, the power to decide if
what government does squares with what the Constitution provides.
More exactly, judical review may be defined in these terms: It is the
power of a court to determine the constitutionality of a governmental
action. In part, then, it is the power to declare unconstitutional — to
declare illegal, null and void, of no force and effect — a governmental
action found to violate some provision in the Constitution.
The power of judicial review is held by all federal courts and by most
State courts, as well.
The Constitution does not provide for judicial review in so many
words. But it is clear that the .ramers meant that the federal courts —
and that most especially the Supreme Court — should have that power.
In practice, the Supreme Court established the power of judicial re-
view in 1803.
Since it was decided, the High Court and other federal and State
courts have used the power in thousands of cases. In most of them, the
challenged governmental action has been upheld.
But that is not always the result, of course. To date, the Supreme
Court has decided more than 130 cases in which it has found an act
or some part of an act of Congress to be unconstitutional. And it has
struck down several presidential and other executive branch actions, as
well. It has also voided hundreds of actions of the States and their lo-
cal governments, including more than 900 State laws.
Vocabulary
review — пересмотр судеб-
provision — условие, положение
ного дела
(закона, договора)
null and void — утративший юри-
the .ramers — творцы конститу-
дическую силу
ции США
Vocabulary
Practice
1. Match a line in A with a line in B:
a)
b)
A
B
A
B
trial
matter
to
take to
case
subject
decision
to
hold
suit
final
court
to
try
court
regular
district
to
bring in
trial
concurrent
jurisdiction
associate
judicial
judge
2. .ind synonyms:
a)
suit;
b)
to decide a case;
c)
juridical circuit;
d)
to indict;
e)
plea.
3. Say what you have learned about:
a)
Court of Appeals;
b)
Claims Court;
c)
Tax Court;
d)
Court of International Trade;
e)
Supreme Court;
f)
Special Courts;
g) Constitutional Courts;
h) District Courts;
i) Judicial Review.
1.6. The American Legal System I
One of the most pervasive ways that government affects business is
through the legal system. The law protects both individuals and busi-
nesses against those who threaten society. It also spells out accepted
ways of performing many essential business functions — along with the
penalties for the failure to comply. In other words, like the average
person, companies must obey the law or face the consequences. Al-
though this fact limits a company’s freedom, it also provides protec-
tion from wrongdoers.
Sources of law
Law is not static; it develops in response to changing conditions and
social standards. The U.S. Constitution and the Bill of Rights are the
foundation for the laws, but they are rather general documents. Laws
offering specific answers to specific problems are constantly embellish-
ing the basic principles of our society.
Laws originate in various ways: through legislative action (statutory
law), through administrative rulings (administrative law), and through
customs and judicial precedents (common law). To one degree or an-
other, all three forms of law affect businesses.
Statutory law
Without Congress, there would be no federal
Statutory law
Statute, or law,
statutory law, which is law written by legislative
created by a legislature
bodies. The Constitution, in fact, specifically
grants the Senate and the House of Representa-
tives the right “to regulate [interstate] commerce”.
Because of the many steps involved in passing a
bill, most statutory law reflects a broad consensus
of opinion. In some cases, however, laws bene-
fiting narrow interests are sometimes pushed
through Congress by senators or representatives
friendly to those interests.
States also have legislative bodies that write
statutory laws applicable within their boundaries.
It is common for state laws to vary considerably,
presenting problems for companies that do busi-
ness in several states. The problem would be
*Uniform
much worse, however, without the *Uniform
Commercial
Code
Commercial Code (UCC), which provides a na-
Set of standardized laws
tionwide standard in a number of areas of com-
governing business Tran-
mercial law, such as the writing of sales contracts
sactions that have been
and warranties. The UCC has been adopted in its
adopted by many states
entirety in 49 states, and ab\x756F\x2074\x6168\x666C\x6F20\x2066\x7469\x6820\x7361\x6220\x6565\x0D6E\x6461\x706F\x6574\x2064\x6E69\x4C20\x756F\x7369\x6169\x616E\x0D2E\x6F56\x6163\x7562\x616C\x7972
penalty – взыскание (штраф, на-
warranty — договорная гаран-
казание)
тия
legislative action — действие зако-
UCC (Uniform Commercial Code) —
нодательной власти
единый торговый кодекс США
judicial precedent — судебный пре-
цедент
to pass a bill — принимать (одоб-
рять) законопроект
1.7. The American Legal System II
Administrative law
Once laws have been passed by a legislature, responsibility for en-
forcing them typically passes to an administrative agency or commis-
sion. That administrative agency may be called on to clarify a regulation’s
intent, often in consultation with representatives of the affected indus-
try. The administrative agency may then write more specific regulations,
which are considered administrative law. .or example, the .ederal
Trade Commission issues regulations (and enforces laws Congress has
enacted) concerning such deceptive trade practices as unfair debt col-
lection and false advertising.
Administrative agencies also have the power to investigate wheth-
er any corporations are breaking administrative laws. A particular cor-
poration found to be misbehaving may agree to a consent order, which
allows the company to promise to stop doing something without ac-
tually admitting to any illegal behavior. As an alternative, the admin-
istrative agency may start legal proceedings against the company in a
trial presided over by an administrative judge. During the trial, witnesses
are called and testimony is taken to determine the facts of the situa-
tion. The judge then issues a decision, which may impose corrective
actions on the company. If the company objects to the decision, it may
file an appeal in a regular federal court. The administrative agency may
also appeal if it is unhappy with the ruling of the independent admi-
nistrative law judge.
Common Law
Common Law, the sort of law that comes out of courtrooms and
judges’ decisions, began in England many centuries ago and was
brought to America by the colonists. It is applied in all states except
Louisiana, which has a .rench heritage and therefore follows some of
the princi ples of the Napoleonic Code. Common law is sometimes
called the “unwritten law” to distinguish it from legislative acts and ad-
ministrative agency regulations, which are written documents. Instead,
common law is established through custom and the precedents set in
courtroom proceedings.
Despite its “unwritten” nature, common law has great continuity,
which derives from the doctrine of stare decisis (Latin for “to stand by
decisions”). What the stare decisis doctrine means is that judges’ deci-
sions establish a precedent for deciding future cases of a similar nature.
Because common law is based on what has gone before, the legal frame-
work develops very gradually.
In the United States, common law is applied and interpreted in the
system of courts. Common law thus develops through the decisions in
trial courts, special courts, and appellate courts. The Supreme court (or
the highest court of a state, when state laws are involved) sets precedents
for entire legal systems; lower courts must then abide by those prece-
dents as they pertain to similar cases.
In legal proceedings, common law, administrative law, and statutory
law may all be applicable. If there is a conflict, statutory law generally
prevails. But the three forms of law overlap to such an extent that the
difference among them is often indistinguishable. .or instance, if you
bought what you thought was a goose down coat and then found out that
it was actually filled with reprocessed polyester, you could sue the coat
manufacturer for misrepresentation. Although the basis for this suit is
an old concept in common law, it has also been incorporated in state
and federal legislation against fraudulent and misleading advertising,
which is further interpreted and enforced by the .ederal Trade Com-
mission.
Vocabulary
to pass a law = to pass a bill —
an appeal — подавать аппе-
ляцию
принимать (одобрять) зако-
common law — общее право, за-
нопроект
administrative law — администра-
кон
тивное право
“unwritten law” — неписаный за-
to break a law — нарушать закон
кон
courtroom — зал судовых заседа-
consent order — приказ суда со-
гласно с составленным сто-
ний
ронами соглашением
stare decisis — стоять на решен-
witness — свидетель
ном (обязывающая сила преце-
to take a testimony — снимать
дентов)
свидетельские показания
fraudulent — обманный, мошен-
нический
Vocabulary
Practice
1. Match a line in A with a line in B:
a)
b)
A
B
A
B
to
take
appeal
judicial
order
to
break
bill
legislative
decisis
to
pass
law
administrative
precedent
to
file
testimony
consent
law
stare
action
2. Say what you have learned about:
a) American legal system;
b) statutory law;
c) administrative law;
d) common law.
1.8. Department of Justice
Established: 1870
Head: Attorney General
Solicitor General. Represents the United States in the Supreme
Court; decides which lower court decisions Government should ask Su-
preme Court to review and position Government should take in cases
heard by High Court.
Antitrust Division. Handles court cases involving violations of anti-
trust laws, other federal statutes covering illegal business practices.
Land and Natural Resources Division. Handles most civil (non-
criminal) cases involving the public lands and other real property owned
by the United States; represents the Government’s interests in civil cases
involving Indians and Indian affairs; handles both civil and criminal
cases arising out of federal environmental protection laws.
Tax Division. Handles both civil and criminal cases arising out of the
tax laws; most often, acts as in-court attorney for the Internal Revenue
Service.
Civil Rights Division. Handles both civil and criminal cases involving
acts of discrimination prohibited by the various federal civil rights laws.
Civil Division. Handles most of the civil cases to which the United
States is a party (all of those civil cases not handled by one of the
other Divisions).
Criminal Division. Handles most court cases involving federal crimes
(all criminal cases not handled by one of the other Divisions).
.ederal Bureau of Investigation. Investigates most cases involving vi-
olations of federal criminal laws; pursues, arrests most persons suspected
of or charged with federal crimes.
Drug Enforcement Administration. Administers, enforces federal laws
relating to controlled substances (princi pally narcotics and dangerous
drugs).
Vocabulary
министр юс-
antitrust laws — антитрастовое за-
тиции США
конодательство
real property — недвижимость (не-
Solicitor General — заместитель
министра юстиции США
движимая собственность)
lower court — подведомственный
in-court — судебный
суд
Internal Revenue Service — Служ-
High Court — Высокий суд
ба внутренних прибылей в
США
Supreme Court — Верховный
суд
to be charged with a crime — быть
Antitrust Division — антитрасто-
обвиненным в преступлении
вый отдел Министерства
юстиции
1.9. Department of Labor
Established: 1913
Head: Secretary of Labor
Employment and Training Administration
An umbrella agency. Through the United States Employment Service,
aids the States to operate a system of local employment offices; through
the Unemployment Insurance Service, supervises the States’ adminis-
tration of their unemployment compensation programs (largely financed
by a federal tax on employers); through the Office of Employment and
Training Programs, makes grants for and administers several job-train-
ing, work experience, and public service employment programs; through
the Bureau of Apprenticeship and Training, works to improve the stan-
dards of apprenticeshi p and training for various skilled jobs.
Employment Standards Administration. An umbrella agency. Through
the Wage and Hour Division, enforces federal minimum wage and
maximum hours laws; through the Office of .ederal Contract Compli-
ance Programs, enforces laws prohibiting discrimination in employment
on all federal or federally-supported construction projects; through the
Office of Workers’ Compensation Programs, administers laws provid-
ing injury and accident benefits for federal employees.
Labor-Management Services Administration. Administers laws gua-
ranteeing the reemployment rights of veterans; enforces federal laws regu-
lating the operations of private pension and welfare plans; acts as an
advisory agency to help in the collective bargaining process.
Occupational Safety and Health Administration. Enforces federal laws
setting minimum safety and health standards in most work situations.
Mine Safety and Health Administration. Enforces federal laws set-
ting minimum safety and health standards for mining operations.
Bureau of Labor Statistics. Collects, analyzes, and publishes data on
employment, unemployment, hours of work, wages, and prices.
Vocabulary
agency — агентство,
to administer laws — отправлять
в котором еще несколько
правосудие
подведомственных агентств
accident benefits — пособия при
compliance — соответствиe, со-
несчастном случае
гласие
1.10. Department of Commerce
Established: 1903
Head: Secretary of Commerce
Bureau of the Census. Takes a census of the nation’s population every
10 years (as required by the Constitution, particularly for the appor-
tionment of seats in the House of Representatives); collects, analyzes,
and publishes a wide variety of other statistical data about the people and
the economy of the nation.
National Bureau of Standards. Develops and maintains the uniform
standards of all weights and measures which, by law, may be used in
the United States; performs a wide range of advanced scientific and other
experimental and testing functions; furnishes scientific and technologi-
cal services to both government and private industry.
Patent and Trademark Office. Issues more than 60,000 patents each
year (patents of invention, good for 17 years; patents of design, good
for 14 years; and plant patents, good for 17 years); registers some
30,000 trademarks each year (good for 20 years, and renewable).
National Oceanic and Atmospheric Administration. Operates the
National Weather Service, which forecasts and reports weather condi-
tions throughout the country; makes satellite observations of weather
and other features of the Earth’s environment; conducts oceanic, atmos-
pheric, seismological, and other environmental research; publishes its
findings in nautical and aeronautical maps, charts, and other reports;
administers the Sea Grant program (which provides grants for marine
research and education).
Maritime Administration. Administers several programs to promote
the development and operation of the nation’s merchant marine; sub-
sidizes shipbuilding and certain ship operating costs (especially to coun-
ter foreign competition); conducts research and development programs
to improve the merchant marine; trains officers for the merchant ma-
rine (at the U.S. Merchant Marine Academy, at Kings Point, N.Y.).
Minority Business Development Agency. Promotes and coordinates
federal and other public and private efforts to help organize and
strengthen business owned and operated by members of minority groups;
furnishes management and technical assistance to minority firms.
Bureau of Economic Analysis. Collects, analyzes, and publishes data
to provide a reliable and detailed picture of the structure, condition, and
prospects of the nation’s economy; makes continuing reports on the gross
national product (the GNP, the total national output of goods and serv-
ices, measured in dollar terms).
International Trade Administration. Promotes American interests in
foreign trade; maintains a network of .oreign Commercial Service offices
to report on business conditions and trade and investment opportuni-
ties abroad; conducts trade fairs and operates trade centers in other coun-
tries.
Vocabulary
to take the census — проводить
GNP — Gross National Product —
перепись населения
валовой национальный про-
to furnish — зд. предоставлять
дукт
Vocabulary
Practice
1. Match a line in A with a line in B:
A
B
umbrella
court
antitrust
general
lower
agency
accident
benefits
real
division
attorney
property
2. Put the necessary word in the sentence: employment, countries, crimi-
nal, Solicitor General, violations, pension:
a) Antitrust division handles court cases involving ... of antitrust laws.
b) ... represents the United States in the Supreme Court.
c) Bureau of Labor Statistics collects, analyzes, and publishes data on
... …, unemployment, hours of work, wages, and prices.
d) Tax Division handles both civil and ... cases arising out of the tax laws.
e) Labor-Management Services Administration enforces federal laws
regulating the operations on private ... and welfare plans.
f) International Trade Administration conducts trade fairs and operates
trade centers in other ... . …
3. Say what you have learned about 3 executive departments of the
.ederal Government, their functions and divisions inside them.
1.11. Rights that Employees Demand
There are many rights that workers feel entitled to today. .ollowing
are the major ones:
· the right to a job;
· the right to protection from arbitrary or sudden termination;
· the right to privacy of possessions and person in the workplace,
including freedom from arbitrary searches, use of polygraphs,
surreptitious surveillance, and intrusive psychological or medical
testing;
· the right to equal opportunity and nondiscriminatory treatment in
personnel decisions;
· the right to a clean, healthy, and safe environment on the job,
including freedom from undue stress, sexual harassment, cigarette
smoke, and exposure to toxic substances;
· the right to be informed of records and information kept and to
access to personnel files;
· the right to freedom of action, association, and lifestyle when off
duty;
· the right to freedom of conscience and to inform government or
media about illegal or socially harmful corporate actions;
· the right to self-actualization through career advancement;
· the right to collective bargaining and to strike;
· the right to due process for grievances against the employer;
· the right to free expression of sexual preference and choice of a
romantic partner;
· the right to partici pate in major decisions affecting one’s job;
· the right to freedom of political belief and expression, including
the right to publish opinions related to occupation;
· the right to adequate leisure time for personal and family activities;
· the right to reject interdepartment and intercity transfers;
· the right to choose clothing and hair style;
· the right to fair pay and fringe benefits such as medical and
insurance;
· the right to an adequate pension.
Vocabulary
surreptitious surveillance — тайное
fringe benefits — дополнительные
наблюдение
льготы
harassment — приставание
1.12. .alse and Deceptive Advertising
There is a little doubt that advertising is an effective marketing tool,
but many people question its value to society. They suggest that adver-
tising raises costs, wastes resources, perpetuates stereotypes, manipulates
the consumer on a subconscious level, and distorts the truth.
Public concern about potential misuses of advertising is responsible
in part for the growth of government regulation. Today, several federal
agencies and state governments strive to guarantee “truth in advertising”.
Advertisers themselves, their agencies, the media, and many trade and
professional associations also set guidelines to protect the public from
unscrupulous pitches.
The .ederal Trade Commission
The federal government’s advertising watchdog is the .ederal Trade
Commission (.TC). This agency was created in 1914, when Congress
passed the .ederal Trade Commission Act. The commission’s role was
expanded in 1938 by the Wheeler-Lea Act, which gives the .TC spe-
cific authority to control false or misleading advertising by most food,
drug, health, and cosmetic companies.
The .TC has developed a couple of ground rules for advertisers. One
is that all statements of fact must be supported by evidence. This includes
words (“Bounty soaks up more than the next leading brand”) and dem-
onstrations. Thus, advertisers cannot use whi pped cream in a shaving
cream commercial to create an impression of a firm, heavy lather. .ur-
thermore, advertisers must not create an overall impression that is in-
correct. In other words, they cannot claim that doctors recommend a
product if they do not; nor can they present an actor who delivers the
message dressed in a doctor’s white jacket.
Under the Reagan administration, the .TC has taken the position
that guaranteeing the truth of ads is extremely costly and that consum-
ers would be better served if the rules were relaxed somewhat. Con-
sumers could exercise their own good judgement, and they might pay
less for products because advertising costs might decline. Although there
has been no formal change in .TC regulation, lately the agency seems
to have favored a loose interpretation of appropriate evidence for ad-
vertising claims.
Other government regulators
The U.S. Postal Service plays an important role in advertising that
travels through the mail. Much of its activity is geared toward prevent-
ing obscenity in advertising and stopping promotional fraud. In 1982 the
Postal Service began taking a more aggressive stance, encouraging vic-
tims of mail fraud to bring information to the Postmaster to help end
such activities.
Advertising is also regulated by forty-four states that have passed the
Printer’s Ink Model Statute, drawn up in 1911 by the trade newspa-
per of the advertising industry. The statute provides punishment for
“untrue, deceptive, or misleading” advertising. Most states also regulate
advertising practices by individual industries, such as liqu\x726F\x7320\x6F74\x6572\x2C73\x7320\x6F74\x6B63\x620D\x6F72\x656B\x6172\x6567\x2C73\x6520\x706D\x6F6C\x6D79\x6E65\x2074\x6761\x6E65\x6963\x7365\x202C\x6E61\x2064\x6D73\x6C61\x206C\x6F6C\x6E61\x6320\x6D6F\x6170\x696E\x7365\x0D2E\x6F56\x6163\x7562\x616C\x7972
.TC — Федеральная торговая
fraud — обман, мошенничество
комиссия
deceptive — обманчивый, вводя-
good judgement — здоровое суж-
щий в заблуждение
дение
misleading — вводящий в заблуж-
claim — иск
дение
1.13. Three ways to protect your ideas:
Copyrights, Trademark, and Patent
Several forms of legal protection are available for your creations.
Which you should use depends on what you have created.
Copyrights
Copyrights protect the creators of literary, dramatic, musical, artistic,
and other intellectual works. Any printed, filmed, or recorded mate-
rial can be copyrighted. The copyright gives its owner the exclusive right
to reproduce (“copy”), sell, or adapt the work he or she has created.
Copyright law covers reproduction by photocopying, videotape, and
magnetic storage.
The Copyright Office, Library of Congress, will issue a copyright to
the creator or to someone the creator has granted the right to repro-
duce the work. (A book, for example, may be copyrighted by the au-
thor or the publisher.) Copyrights issued after 1977 are valid for the
lifetime of the creator plus 50 years. Copyrights issued prior to 1977 are
good for 75 years.
Technically, copyright protection exists from the moment you cre-
ate the material. When you distribute a work, place a notice on copies that
includes the term “copyright” or an abbreviation, the name of the au-
thor and the year of publication — for example, “Copyright 1986 Jane
Doe”. Works can be registered with the Copyright Office for $10.
Trademark
A trademark is any word, name, symbol, or device used to distinguish
the product of one manufacturer from those made by others. A service mark
is the same thing for services. McDonald’s golden arches are one of the
most visible of modern trademarks. Brand names can also be registered
as trademarks. Examples are Polaroid, and Chevrolet.
If property registered and renewed every 20 years, a trademark gener-
ally belongs to its owner forever. Among the exceptions are popular brand
names that have become generic terms, meaning that they describe a whole
class of products. A brand-name trademark can become a generic term if
the trademark has been allowed to expire, if it has been incorrectly used
by its owner (as in the case of Borden’s ReaLemon lemon juice, which
the .ederal Trade Commission ruled was being used by Borden to main-
tain a monopoly in bottled lemon juice), or if the public comes to equate
the name with the class of products (for example, yo-yos).
It is a good idea to have a patent attorney do a “clearance search” be-
fore you begin using a mark to be sure it isn’t already in use. There’s fil-
ing fee of $175 for registration with the Patent and Trademark Office.
Registration protects your mark for 20 years, and you may renew every
20 years.
Patent
A patent protects the invention or discovery of a new and useful
process, an article of manufacture, a machine, a chemical substance, or
an improvement on any of these. Issued by the U.S. Patent Office, a pat-
ent grants the owner the right to exclude others from making, using,
or selling the invention for 17 years. After that time, the patent be-
comes available for common use. On the other hand, patent law guar-
antees the originator the right to use the discovery exclusively for a rel-
atively long period of time, thus encouraging people to devise new ma-
chines, gadgets, and processes. On the other hand, it also ensures that
rights to the new item will be released eventually. Other enterprises may
be able to make use of it more creatively than its originator.
Vocabulary
плата
Vocabulary
Practice
1. Match a line in A with a line in B:
A
B
to
pass
taxes
to
charge
law
to
apply
bill
to
levy
prices
good
benefits
filing
fee
fringe
judgement
2. Say what you have learned about:
a) copyrights;
b) trademarks;
c) patents.
3. Put the necessary word in the sentence: copyright, trademark, pat-
ent, service, creations.
1. A ... grants one the sole right to manufacture, use, or sell any new
and useful art, machine, manufacture etc.
2. Several forms of legal protection are available for your ... .
3. The patent laws are administered by the Patent and ... Office in
the Department of Commerce.
4. A ... is the exclusive right of an author to reproduce, publish, and
sell his/her creative work.
5. A ... mark is the same thing for services.
1.14. The Governmental Environment of Business
There is today practically no aspect of business that governments can-
not and will not regulate if the occasion arises and popular or legisla-
tive support exists. In recent years, governments have responded affirm-
atively to a wide range of public concerns about such matters as prod-
uct safety, product labeling, advertising, minority employment, hon-
esty, pollution, and worker safety, to mention a few. Accordingly, laws
have been passed to deal with these concerns. These, when added to the
accumulated volume of laws in the past, have resulted in more govern-
ment control of business than at any peacetime period in our history.
.urthermore, the direction of many of these laws has been to involve
government in detailed managerial decision making. Government con-
trols in the automobile industry over emission and safety standards are
cases in point.
To the typical businessperson, government regulation is burdensome.
Anti pollution controls, for example, require vast expenditures of funds
by many companies. Equal opportunity regulations influence the ways
in which companies employ and treat people. Other laws force man-
agers to act in certain ways with respect to product design, work envi-
ronment, prices charged, costs of capital, and so on. An often overlooked
cost of regulation is the time and energy managers and staff must de-
vote to preparing reports for government.
Business not only is subject to the regulations of the federal govern-
ment but also must deal with fifty state and hundreds of local govern-
ments. In addition, the companies that do business abroad are subject
to foreign government regulations.
But governments support business as well. .or example, the federal
government helps business by making direct cash subsidies to individ-
ual companies, it gives business the results of government-funded re-
search, it protects busineses from unfair domestic and foreign compe-
tition, and it opens up foreign markets for business by negotiating with
foreign governments.
The impact of government on business derives from laws applied by
individuals in the executive branches of governments or tested in courts
of law. These laws and their implementation are, in turn, based upon
legal powers given to governments and the administrators of government
programs. The fundamental basis for this tower of regulations is the
Constitution of the United States.
In the Constitution, most of the economic powers exercised by the
federal government are contained in Article 1, Section 8. This section
gives Congress the power to levy and collect taxes; to pay debts and
provide for common defense and general welfare; to borrow money; to
regulate commerce; to establish bankruptcy laws; to coin money and
regulate its value; to fix standards of weights and measures; to stop coun-
terfeiting; to establish post offices and post roads; to promote science and
useful arts by granting patents and exclusive rights over writings and
discoveries; to punish piracies; to exercise exclusive legislation over the
geographical seat of government, military establishments, and other
lands owned by the governments; and “to make all laws which shall be
necessary and proper for carrying into execution these foregoing pow-
ers, and all other powers vested by this Constitution in the government
of the United States, or in any department or officer thereof ”. A rea-
sonable interpretation of such grants of authority permits the national
government in today’s economy to do just about anything that is like-
ly to pass through congressional law-making machinery.
Vocabulary
to pass a law — принимать зако-
to apply a law — применять закон
нопроект
to levy taxes — облагать налогом
to charge prices — запрашивать
counterfeiting — подделка денег,
цены
ценных бумаг
1.15. Contracts
Broadly defined, a contract is an exchange of promises enforceable
by law. A great many business and personal transactions — including
marriage, estate planning (wills), and credit purchases — involve
contracts. .or example, the conflict between Pennzoil and Texaco over
the purchase of Getty Oil falls into the category of contract law.
Conditions for contracts
The law of contracts deals largely with identifying the exchanges that
can be classified as contracts. Commitment is the essence of a contract.
In addition, the following factors must usually be present for a contract
to be valid and enforceable
An offer must be made. One party must propose that an agreement
be entered into by both parties. The offer may be oral or written; for
example, a salesperson may telephone or write a prospective client, of-
fering to sell the client materials at a certain price. Or the offer may take
the form of an act; for example, the telephone company offers to provide
service by the act of placing a pay phone on a street corner. In any case
the offer must be firm, definite, and specific enough to make it clear
that someone intends to be legally bound by the offer.
Acceptance of the offer must be voluntary. Don Corleone, the god-
father of film and novel, frequently made people “an offer they couldn’t
refuse”. Luckily for him, he did not depend on the law to enforce the
promises gained by these offers, because an ability to refuse is a prereq-
uisite for a valid contract. The courts will not uphold a contract if either
the offer or the acceptance was obtained through what is termed “du-
ress or undue influence”. This rule is known as the princi ple of mu-
tual acceptance. Both parties must enter into a contract freely.
Both parties must give consideration. A contract is legally binding only
when each party gives something of value to the other. This item of val-
ue, or consideration, may be money, goods, services or the forbearance
(giving up) of a legal right. But the relative value of each party’s consid-
eration generally does not matter to the courts. If people make what seems
later to be a bad bargain, that is their affair. Consideration is legally suf-
ficient when both parties receive what they agreed on.
Both parties must be competent. The law gives to certain classes of
people only a limited capacity to enter into contracts. Minors, people who
are senile or mentally handicapped, and in some cases those who are
intoxicated cannot usually be bound by a contract for anything but the
bare necessities: food, clothing, shelter, and medical care.
The contract must be legal. The law will not enforce a promise that
involves an illegal act. .or example, a gangster cannot get help from
the courts to enforce a contract to deliver illegal drugs at a prearranged
price. Nor can a contract be enforced if one party signed under duress.
The contract must be in proper form. Although many contracts can
be made orally, by an act, or by a casually written document, in cer-
tain situations the law requires that a prescribed form be followed. .or
example, the transfer of goods worth $500 or more must be accom-
panied by a written document signed by both parties. The written form
is also required for all real estate contracts and for contracts that can-
not be fulfilled within one year, such as installment-purchase agreements.
When the law requires a written document, any change in the agreement
must also be written.
Vocabulary
estate planning — завещание иму-
real estate — недвижимое имуще-
щества
ство
duress — принуждение
to enforce a promise — принуж-
handicapped person — человек с
дать к выполнению договор-
физическими или умственны-
ных обязательств
ми недостатками, инвалид
to cancel a contract — аннулиро-
вать контракт
1.16. Breach of Contract
Most valid contracts are obeyed by both parties. Each does what was
promised, and the contract is terminated by being carried out. But some-
times a contract will not be fulfilled because both parties agree to end
it. And occasionally the law will excuse one party from meeting an agree-
ment; for example, bankruptcy frees a person from certain credit agree-
ments, and death or serious illness is a valid excuse for not fulfilling a
contract for personal services. When one party has no legal excuse for
failure to live up to the terms of a contract, the other party may claim
breach of contract.
The essence of a contract is that the law will enforce the promise. Say
that Nick Santo, a builder, contracts to buy 2,000 feet of pine board from
the Zeller Lumberyard.The contract sti pulates that the price for the
board is to be $2 per foot and that delivery must be made by January
25. But on January 10 the lumberyard calls Santo and tells him that
another contractor has offered to buy all the yard’s lumber at $2.50
per foot. Zeller tells Santo that he must pay the higher price or wait
untill .ebruary 15 for delivery. Santo has the following options:
Discharge: When one party violates the terms of the agreement, gene-
rally the other party is under no obligation to continue with his or
her end of the contract. In other words, the second party is discharged
from the contract. Santo is free to buy his wood from another lumber-
yard. If Zeller goes ahead and delivers the wood at the later date, Santo
does not have to accept it.
Damages: A party has the right to sue in court for damages that were
foreseeable at the time the contract was entered into and that result from
the other party’s failure to fulfill the contract. The amount of damages
awarded usually reflects the amount of profit lost and, often, court costs
as well. If Santo had to pay another yard a higher price to get lumber,
he would be entitled to collect the difference from Zeller. If Zeller’s failure
to deliver the wood caused Santo to lose a large contract or a good cus-
tomer, the court might force Zeller to pay damages far exceeding the
value of the wood itself.
Specific performance: A party can be compelled to live up to the
terms of the contract if money damages would not be adequate. If, for
instance, Zeller had agreed to sell not pine board but a unique, one-
of-a-kind wood paneling from a sixteenth-century Spanish castle, Santo
could demand specific performance of the contract. Another similar sit-
uation would be a personal services contract. If Bruce Springsteen didn’t
show up for a concert, he could well be sued for breach of contract,
because he’s a hard act to replace.
Vocabulary
to fulfill (to carry out) a contract —
lumberyard — лесной склад
исполнять условия контракта
delivery — поставка
to meet an agreement — выпол-
to sue in court — выступать в суде
нять соглашение, договор
to enter into a contract — заклю-
breach of contract — нарушение
чать контракт
контракта
court costs — судебные издержки
Vocabulary
Practice
1. Match a line in A with a line in B and make up your own sentences
using the table:
A
B
cancel
an
promise
carry
a
meet
in
contract
sue
court
enter
out
enforce
into
agreement
2. Say what you have learned about:
a) conditions for contracts;
b) cancellation of a contract;
c) breach of a contract.
3. Put the necessary word in the sentence: propose, voluntary, fulfilled,
enforceable, legal.
1. A contract is an exchange of promises ... by law.
2. One party must ... that an agreement be entered into by both
parties.
3. Acceptance of the offer must be ... .
4. The contract must be ... .
5. A contract will not be ... because both parties agree to end it.
1.17. Property transactions
Anyone interested in business must know the basics of property law.
Property is anything of value, tangible or intangible, that can be owned
or enjoyed by someone. The law recognizes two types of property, real
and personal. Real property is land or anything permanently fixed to land,
such as trees, fences, or mineral deposits. Personal property is anything
movable that can be owned. A piece of marble in the earth is real prop-
erty. When it is cut and sold as a block, it becomes personal property.
Sometimes it is difficult to determine ownershi p of intellectual (in-
tangible) property, such as a company’s customer lists or other con-
fidential business information. .or example, when Steven Jobs left Apple
Computer to start his own firm, Apple management was worried that
Jobs would use what he knew about his old company’s customers and
operations to compete against it. Was Jobs taking information illegally
from Apple, or did it belong to him? Eventually Jobs and Apple came
to an understanding and settled without any court action, but the con-
troversy could have become a lawsuit.
When ownershi p is more clear-cut, both real and personal prop-
erty can be handled as the owners see fit, with one notable exception:
Under certain circumstances, government has a claim that takes prece-
dence. Let’s say, for example, that your state government wants to build
a road right through your yard. Even though you may not want to move,
you can be forced to sell your property to the state. You will be paid a
fair market price, but you will not have the right to refuse to sell. By
the same token, the state can zone your property for various uses with-
out your approval.
Transfer of real property
Two types of documents are important in obtaining real property for
factory, office, or store space. A deed is a legal document by which an
owner transfers her or his interest in real property to a new owner. A
lease is used for a temporary transfer of interest in real property. The
party that owns the property is commonly called the landlord; the party
that occupies or gains the right to occupy the property is the tenant. A
lease is granted for a specific period of time, during which the tenant
pays the landlord in periodic installments. Generally, a lease may be
granted for any length of time that the two parties agree on. A long lease
allows a business with insufficient capital to buy real property and en-
joy the stability normally associated with ownership.
Transfer of personal property
A permanent transfer of tangible or intangible personal property —
such as merchandise or a check — is technically a transfer of title, or
legal possession of the property and the right to use it. Most problems
with the transfer of personal property relate to the question of when the
sale occurred or who should be responsible for damaged or lost goods.
These questions may sound easy, but in a legal sense they are sometimes
difficult to answer.
When an individual is buying something from a merchant, the time
of transfer is sometimes easily established. In the typical cash register
sale, for example, title passes when the clerk accepts the customer’s
money and hands over the goods. Any loss before the transaction is the
seller’s, and any loss afterward is the buyer’s. But when property is pur-
chased COD (cash on delivery), the time of transfer is not so easily
determined. Although an agreement to sell and buy something has al-
ready been struck, title is not transferred until the buyer accepts the
goods and pays for them. Installment purchases are even more compli-
cated. Generally title passes when the buyer takes possession of the prop-
erty. If, for example, you buy a stereo set on credit, you have title to
it once you take delivery; even if the set is stolen or damaged before
you have finished paying for it, you are responsible for paying\x7420\x6568\x6620\x6C75\x0D6C\x7570\x6372\x6168\x6573\x7020\x6972\x6563\x0D2E\x6F56\x6163\x7562\x616C\x7972
transaction — сделка (операция)
to lease — брать, сдавать в арен-
real property — недвижимость
ду
personal property — личная соб-
title — право собственности
ственность
tenant — арендатор
tangible — материальный
COD (cash on delivery) — опла-
court action — судебный иск
та после доставки
deed — документ о передаче аб-
to pay by installments — платить в
солютного права на недвижи-
рассрочку
мость, протокол
Vocabulary
Practice
1. Match a line in A with a line in B:
A
B
real
market
fair
firm
temporary
installment
own
transfer
periodic
property
2. Say what you have learned about:
a)
property;
b)
real property;
c)
personal property;
d)
deed;
e)
title;
f)
lease.
3. Put the necessary word in the sentence: circumstances, landlord, lease,
ownership.
1.
Sometimes it is difficult to determine ... of intellectual property.
2.
Under certain ... government has a claim that takes precedence.
3.
The party that owns the property is called ... .
4.
A long ... allows a business with insufficient capital to buy real
property.
1.18. Bankruptcy
A receiver is ap-
A referee is
pointed.
A trustee is
appointed.
The court ap-
The bankrupt firm
elected.
The court names
points a tempo-
is legally dischar-
The creditors elect
its representative (a
rary custodian of
ged from its obli-
someone to sell
referee).
the firm’s assets
gations.
assets and distrib-
(a receiver).
The firm is free to
ute the proceeds
begin a fresh start
as specified by
without the weight
law.
of past failures.
With is debts dis-
charged, the firm
can start anew.
.ig. 1. Steps in Bankruptcy Proceedings
Voluntary bankruptcy may buy a debtor time to reorganize finances and
continue operating. But using this device to evade financial obligations is
extremely risky from a legal standpoint, and declaring bankruptcy may
severely damage the reputation and credit rating of a firm or individual.
Bankruptcy is the legal procedure by which a person or a business
that is unable to meet financial obligations is relieved of most of its
debts. The court steps in to divide the existing assets among those who
are owed money. Although some companies cease to exist after declar-
ing bankruptcy, many continue to operate and eventually emerge from
bankruptcy proceedings. (.igure 1 shows the steps involved in declar-
ing bankruptcy.)
When bankruptcy proceedings are initiated by firm’s creditors, the
firm undergoes involuntary bankruptcy. .ar more common is volun-
tary bankruptcy, in which the debtor begins the proceedings. By en-
tering voluntary bankruptcy, a company may gain time to reorganize,
to cut costs drastically and continue streamlined operations. While this
reorganization is going on, the company can often stop regular pay-
ments on interest and princi pal to creditors as well as delay lawsuits.
Texaco, for instance, considered filing bankruptcy as a tactic in its suit
with Pennzoil.
Since 1978, almost 68,000 companies have filed for voluntary bank-
ruptcy, and the majority has managed to survive and even prosper. Some
critics contend that many of these companies did not really need to file
bankruptcy but rather were using bankruptcy to avoid unpleasant obli-
gations. In one controversial case, Continental Airlines used voluntary
bankruptcy to avoid paying wages and benefits agreed to during a collective
bargaining session with a union, claiming that it could not meet those
obligations and remain in business; the bankruptcy court sided with Con-
tinental. Another case involved Manville Corporation, a producer of as-
bestos and building materials. Manville claimed that it could not afford
to pay the costs of settling an estimated 16,500 lawsuits filed against it
by people who had become ill after exposure to asbestos. However, the
bankruptcy judge ordered Manville to create a $2.5 billion fund to com-
pensate the victims. Experts believe that the settlement will discourage
other companies from resorting to bankruptcy. This case is therefore
another example of how government and business interact to establish
the ground rules for commerce.
Vocabulary
to meet obligations — выполнять
to file bankruptcy — уведомлять о
банкротстве
обязательства
receiver — управляющий конкур-
to be relieved of debts — быть осво-
божденным от уплаты долгов
сной массой при банкротстве
to cut costs — сократить расходы
referee — рефери
interest — процент
trustee — доверенный, собствен-
principal — основная сумма (в
ник по назначению суда, по-
печитель
отличие от процентов, основ-
ной капитал)
to discharge (from) — освобож-
lawsuit — судебный процесс, иск,
дать (от)
тяжба
Vocabulary
Practice
1. Match a line in A with a line in B:
A
B
legal
start
fresh
materials
regular
case
controversial
court
bankruptcy
payments
building
procedure
2. Say what you have learned about:
a)
involuntary bankruptcy;
b)
voluntary bankruptcy;
c)
bankruptcy proceedings;
d)
referee.
3. Put the necessary word in the sentence: creditors, referee, costs, pro-
cedure, trustee, interest.
1.
A ... is appointed.
2.
The ... elect someone to sell assets.
3.
Bankruptcy is the legal ...
4.
By entirely voluntary bankruptcy, a company may gain time to
cut… ...
5. While this reorganization is going on, the company can stop
regular payment on ...
6. A ... is elected.
1.19. Current .ederal Taxes
Income Taxes
The 16th Amendment gave Congress the power to levy taxes on
income.
Income taxes first became the major source of federal revenue dur-
ing World War I, and (except for a few years during the Depression on
the 1930s) they have remained so ever since.
Income of both individual and corporations are taxed. The rates have
always been progressive — that is, the higher the income the higher
the tax rate applied to it.
The individual income tax regularly produces the larger amount. It
is levied on a person’s taxable income — one’s total income in the pre-
vious year minus certain exemptions and deductions.
Each taxpayer has a personal exemption of $1000 plus another
$1000 exemption for each of his/her dependents; an additional $1000
exemption is also allowed for each person over age 65 or blind. De-
ductions are allowed for several things — mainly for medical and hos-
pital care costs, most State and local taxes, interest payments, and chari-
table contributions.
By April 15 all persons with taxable income in the preceding year
must file tax returns (declarations of that income) with the Internal
Revenue Service. The rates applied to taxable income received in 1983
(and reported on 1984 returns) began at 11 percent in the lowest
brackets ($2300 to $3400 for single persons, $3400 to $5500 for mar-
ried couples) and ranged on up to a maximum of 50 percent in the
top brackets (above $55,300 for single persons, $109,400 for married
couples).
The corporation income tax is applied to all of a corporation’s net
income — all of its earnings above its costs of doing business. (Non-
profit organizations — such as churches, labor unions, charitable foun-
dations, and cooperatives — are not subject to the tax). This levy has
been called the most complicated of federal taxes, largely because of
the many deductions allowed in figuring a corporation’s net (taxable)
income.
The rates now run from 15 percent on the first $25,000 of taxable
earnings on up to a top rate of 46 percent on that income above
$100,000.
Social Insurance Taxes
Three major social welfare programs are supported by “payroll tax-
es” (1) The Old-Age, Survivors, and Disability Insurance (OASDI)
program — the basic social security program, established by the Social
Security Act of 1935; (2) Medicare — health care for the elderly, added
to the social security program in 1965; and (3) the unemployment in-
surance program — to pay unemployment compensation benefits to job-
less workers, also established by the Social Security Act of 1935.
The payroll taxes for both OASDI and Medicare are collected from
most employees and their employers, and from self-employed persons.
Employees now (1984) pay a 6.7 percent tax on their salaries or wag-
es (up to a ceiling of $37,800 of yearly pay — a maximum tax, then,
of $2532.60 for the year). Their employers now pay a tax of 7 percent
on those salaries or wages. The self-employed pay 11.3 percent on the
first $37,800 of yearly income (a maximum of $4271.40).
The unemployment insurance program is a joint federal-State opera-
tion, to make payments to workers who lose their jobs for reasons be-
yond their own control. It is financed by a 3.4 percent federal tax on the
payrolls of nearly all businesses. The States administer the program,
paying jobless benefits according to federal guidelines.
Excise Taxes
Taxes laid on the production, transportation, sale, or consumption
of goods or services are excises. .ederal excise taxes are imposed on a
great many items today, including: gasoline, oil, tires, the “windfall
profits” of oil companies, cigarettes, pipe and chewing tobacco, liquor,
wine, beer, firearms, telephone service, and airline tickets. (Many of
them are called “hidden taxes” — because they are collected from pro-
ducers who then figure them into the prices they charge to their retail
customers.)
Estate and Gift Taxes
The federal estate tax, levied since 1916, is a tax on the property of
deceased persons. Congress added the gift tax in 1924, to plug a loophole
in the estate tax (the giving of money or other property before death
to avoid that tax).
The estate tax is applied to one’s net estate — its full value minus
certain exemptions and deductions. .or 1984, the first $325,000 of an
estate is exempt (so, in fact most estates are not taxed). Deductions are
allowed for such things as State death taxes and bequests to religious
and charitable groups. Anything a husband or wife leaves to the other
is taxed, if at all, only when the surviving spouse dies.
Any person may make up to $10,000 in tax-free gifts to any oth-
er person in any one year. Gifts husband/wives make to one another
are not taxed, regardless of value.
The estate and gift taxes are separate federal taxes, but both are taxes
on the transfer of property (before or after death) — and so they are
levied at the same rates. .or 1984, those rates range from a minimum
of 18 percent on up to a maximum of 55 percent on a net estate or a
gift worth more than $2.5 million.
Customs Duties
Customs Duties (tariffs) are taxes on goods brought into the Unit-
ed States. Congress decides which imports will be taxed (dutied) and
at what rates. Most imports (some 30,000 different items) are dutied;
but some are not — for example, Bibles, coffee, and up to $300 of
American tourist’s purchases. Many duties are set purposefully high
(the “protective tariff”), to protect industries and jobs in the
country.
Miscellaneous Receipts
Huge sums come every year from a multitude of nontax sources, in-
cluding interest payments on many types of loans, court fines, sales/
leases of public lands, sales of surplus property, canal tolls, fees for
passports, copyrights, trademarks, and patents, seignorage (the profit on
minting coins), and many others.
Vocabulary
“windfall profits” — неожиданная
income tax — подоходный налог
прибыль, налог
to levy taxes — облагать налогом
“hidden tax” — скрытый налог
exemption — освобождение
dependent — иждивенец
(косвенный)
to file tax returns — подавать на-
estate tax — налог на передачу
логовую декларацию
собственности в наследство
gift tax — налог на дарение
Internal Revenue Service — Служ-
customs duty — таможенный сбор
ба внутренних доходов (при-
былей) в США
“protective tariff” — “протекци-
онный тариф”
net income — чистый (нетто)
receipts — денежные поступления
доход
payroll profits tax — налог на зар-
fine — штраф
toll — пошлина
плату
excise tax — акцизный сбор
seignorage — налог на право че-
канки монет
Vocabulary
Practice
1. Match a line in A with a line in B:
A
B
customs
income
protective
tariff
excise
profits
net
duty
windfall
tax
2. Say what you have learned about:
a)
Internal Revenue Service;
b)
Payroll profits;
c)
Income tax;
d)
Exemptions.
3. Put the necessary word in the sentence: imports, property, goods,
exemption, income, excises.
1. ... taxes are the major source of federal revenue.
…
2. Taxes laid on the production, transportation, sale, or
consumption of goods or services are ... .
3. The federal estate tax is a tax on the ... of deceased persons.
4. Customs duties are taxes on ... brought into the United States.
5. Most ... are dutied.
6. An additional ... is also allowed for blind.
1.20. Bananas Can be Dangerous:
A Study of a Court Suit
When Willard Joye sli pped and fell on a banana in an A & P
supermarket, he felt the Great Atlantic and Pacific Tea Company
(A & P) should pay for his injuries. In bringing a civil action against
A & P (the defendant), Joye became a plaintiff.
The complex rules used to settle disputes like this differ from court
to court, but they are similar in broad outline. Of course, Joye should
start by consulting an attorney who specializes in personal injury to de-
termine to extent of the harm, the time and effort that may be involved
in bringing an action, and the likelihood of winning the suit.
Initiating a lawsuit
Joye’s attorney must first file with the appropriate court the pleadings
(papers), including the summons and the complaint. The summons is a
legal document telling the defendant that an action has been initiated; it
states that if the defendant doesn’t answer the complaint, the court will
declare a judgment in favor of the plaintiff (default). A summons differs
from a subpoena in that a subpoena requires only that a person give testi-
mony, whereas the summons requires an answer to the complaint.
The complaint contains a brief statement of the facts of the case, tells
how the defendant allegedly caused the harm, and demands relief for
the plaintiff, usually in the form of monetary damages. When the plead-
ings are served, the defendant officially learns that the action has been
filed and that the plaintiff is seeking reimbursement for personal inju-
ries. However, discussions and negotiations among plaintiff, defendant,
and both parties’ legal counsel usually occur after the accident, and so
the complaint frequently comes as no surprise.
Responding to the claim
When faced with a summons, A & P had the following two options
available:
· A & P could have answered the complaint (within a specific
number of days) by serving Joye with a document outlining the
company’s admission or denial of guilt and detailing its defense.
A & P may even have asserted a counterclaim, a demand for relief
from some alleged harm done by the plaintiff.
· If A & P had determined that it was not legally liable for the
damages or that there were not sufficient facts, even if the facts
in the complaint were true, it could have filed a motion to
dismiss, which is a challenge to the legal or factual sufficiency of
the plaintiff’s complaint. If the motion is accepted by the court,
the case would end at that point.
If the court does not dismiss the case, then preparation for the tri-
al begins. Mainly, each party wants to obtain as much evidence and as
many facts as possible from the other party; this gathering of information
is known as discovery. The following procedures usually are included in
the discovery process:
1. A deposition, or sworn verbal testimony, from the defendant, the
plaintiff, and/or witnesses is taken by an officer of the court
(often in an attorney’s office).
2. Sworn written answers to written questions, called interrogatories,
are prepared by the defendant and the plaintiff.
3. Requests for admissions are made to parties in the case in order
to establish the validity of facts.
4. If the mental or physical condition of a party to the case is in
question, mental or physical examinations may be requested.
Both the defendant and the plaintiff may also inspect documents and
other items relevant to the case by formally requesting access to them.
Either party in a lawsuit can minimize the length of the action by
requesting a summary judgement. Such a judgment will be granted by the
court only when the facts of the case are not disputed by either party
and when the only issue in question is the application of the law. Thus
the trial, or search for the truth, becomes unnecessary. The judge need
only apply the law to the given facts.
Going to trial
If there is no dismissal, summary judgment, or out-of-court settle-
ment, the trial begins. Depending on the amount of damages demand-
ed and the type of court, there may or may not be a jury trial. If there
is, the jury is selected and the attorneys begin by making their open-
ing statements concerning the facts and what they plan to prove dur-
ing the trial.
Because the burden of proof is on the plaintiff — that is, the harmed
party must prove the correctness of the case — the plaintiff’s attorney
has the opportunity to call the first witness. Both sides in the case may
examine (question) the witnesses and enter exhibits and physical evi-
dence. After presenting their evidence, both sides present closing argu-
ments to the court. If it is a jury trial, the judge instructs the jury about
the appropriate law to be applied to the facts, the jury deliberates, and
finally it reaches a verdict.
In Joye versus A & P, the jury did find in favor of Joye, the plain-
tiff, and A & P owed him $10,000 in damages. If the jury had found
in favor of A & P, the company would not have been liable for the
damages. A & P subsequently filed an appeal to a higher court (appel-
late level) requesting a review and reversal of the judgement. Eventual-
ly, A & P won a reversal. The company did not have to pay damages,
because the appellate court found there was insufficient evidence to prove
that the defendant was negligent (careless) and had created a dangerous
condition, a banana-slick floor.
Vocabulary
summons — повестка
court suit — судебный процесс
to bring a civil action — подавать
to declare a judgement — объявить
гражданский иск
приговор
subpoena — повестка в суд под
defendant — подсудимый, ответ-
чик, обвиняемый
личную роспись
default — невыполнение обяза-
plaintiff — истец, истица
тельств, неявка в суд
to initiate a lawsuit — открывать
судебное дело
testimony — показания свидете-
to file papers — подавать доку-
лей
менты
allegedly — якобы
pleadings — документы
monetary damages — денежная
компенсация
reimbursement — возмещение
jury trial — суд присяжных
burden of the proof — бремя до-
убытков
казательства
admission (denial) of guilt — при-
знание (отрицание) вины
to enter exhibits — предъявлять
counterclaim — встречный иск
вещественные доказатель-
motion — ходатайство (прошение)
ства
to dismiss a case — прекратить
closing argument — решающий
дело
(неоспоримый) довод
deposition — письменные показа-
to reach a verdict — выносить при-
ния
говор
sworn testimony — скрепление
versus — против
присягой показаний
to file an appeal — подавать апел-
summary judgement — приговор,
ляцию
принятый в порядке упро-
review — пересмотр дела
щенного (суммарного) судо-
reversal of judgement — отмена
судебного приговора
производства
out-of-court settlement — мировое
соглашение вне суда
Vocabulary
Practice
1. Match a line in A with a line in B:
a)
b)
A
B
A
B
summary
trial
to
bring
exhibits
closing
suit
to
declare
verdict
jury
argument
to
file
judgement
sworn
dames
to
initiate
civil action
monetary
judgement
to
enter
case
court
testimony
to
dismiss
papers
to
reach
lawsuit
2. Put the necessary word in the sentence: summons, law, trial,
deposition, admissions.
1. The ... is a legal document telling the defendant that an action has
been initiated.
2. If the court doesn’t dismiss \x6874\x2065\x6163\x6573\x202C\x6874\x6E65\x7020\x6572\x6170\x6172\x6974\x6E6F\x6620\x726F\x7420\x6568\x2E20\x2E2E\x620D\x6765\x6E69\x2E73\x330D\x202E\x2041\x2E2E\x202E\x7369\x7420\x6B61\x6E65\x6220\x2079\x6E61\x6F20\x6666\x6369\x7265\x6F20\x2066\x6874\x2065\x6F63\x7275\x0D74\x2E34\x5420\x6568\x6A20\x6475\x6567\x6E20\x6565\x7364\x6F20\x6C6E\x2079\x7061\x6C70\x2079\x6874\x2065\x2E2E\x202E\x6F74\x7420\x6568\x6720\x7669\x6E65\x6620\x6361\x7374\x0D2E\x2E35\x5220\x7165\x6575\x7473\x2073\x6F66\x2072\x2E2E\x202E\x7261\x2065\x616D\x6564\x7420\x206F\x6170\x7472\x6569\x2073\x6E69\x7420\x6568\x6320\x7361\x2065\x6E69\x6F20\x6472\x7265\x7420\x0D6F\x7365\x6174\x6C62\x7369\x2068\x6874\x2065\x6176\x696C\x6964\x7974\x6F20\x2066\x6166\x7463\x2E73
Список использованной
и рекомендуемой литературы
1. Daniels J. D., Radebaugh L. H. International Business. —
Massachusetts, USA: Addison-Wesley Publishing Company, Inc.,
1997.
2. Dufee T. W. et al. Modern Business Law. — N. Y.: Random House,
1989.
3. Litka M. International Dimensions of the Legal Environment of
Business. — Boston: DWS-Kent, 1988.
4. Magruder .. A. American Government. — N. Y.: Allyn and Bacon,
Inc., 1984.
5. Rachman D. J., Mescon M. H. Business Today. — N. Y.: McGraw-
Hill, Inc., 1993.
6. S\x6574\x6E69\x7265\x4720\x202E\x2E41\x202C\x7453\x6965\x656E\x2072\x2E4A\x2E20\x202E\x7542\x6973\x656E\x7373\x202C\x6F47\x6576\x6E72\x656D\x746E\x6120\x646E\x5320\x636F\x6569\x7974\x202E\x0D97\x2E4E\x5920\x3A2E\x4D20\x4763\x6172\x2D77\x6948\x6C6C\x202C\x6E49\x2E63\x202C\x3931\x3139\x0D2E\x2E37\x5720\x6968\x6D74\x6E61\x4420\x2C2E\x4720\x7265\x6167\x7A63\x4A20\x202E\x2E57\x5420\x6568\x4C20\x6765\x6C61\x4520\x766E\x7269\x6E6F\x656D\x746E\x6F20\x2066\x7542\x6973\x656E\x7373\x202E\x0D97\x6E32\x2064\x6465\x202E\x2097\x2E4E\x5920\x3A2E\x5220\x6E61\x6F64\x206D\x6F48\x7375\x2C65\x3120\x3839\x2E38
8. Жданова И. Ф., Вартумян Э. Л. Англо-русский экономический
словарь. — М.: Рус. яз., 1995.
9. Зеленський П. Г., Зеленська О. П. Українсько-російсько-англій-
ський тлумачний словник ділової людини. — К.: Українсько-
фінський інститут менеджменту і бізнесу, 1998.
10. Назаров В. Курс юридического перевода и англо-русский сло-
варь по англо-американскому торговому праву. — М., 1994.
11. Новый англо-русский юридический словарь / Ю. Ф. Березовен-
ко и др. — К., 1993
Unit 2
BOOKKEEPING
AND AUDITING ACCOUNTING
БУХГАЛТЕРСКИЙ УЧЕТ И АУДИТ
2.1.
What bookkeepers do (Чем занимаются бухгалтеры)
2.2.
Bookkeeping (Бухгалтерия)
2.3.
What is accounting?
2.4.
Accounting (Учет, отчетность)
2.5.
Managerial accounting (Административная отчётность)
2.6.
.inancial accounting (Финансовый учёт)
2.7.
Accouting versus bookkeeping (Бухучет и бухгалтерия)
2.8.
The asset account (Учет активов)
2.9.
Steps in the accounting cycle (Последовательность в учётном
цикле)
2.10. The fundamental accounting equation (Основы бухгалтерского
уравнения)
2.11. Auditing (Аудит)
2.12. The income statement (Отчёт о доходах / расходах)
2.13. Gross sales, net sales, and revenue (Валовый доход от прода-
жи, чистая сумма продаж и доходы)
2.14. Cost of goods sold (or cost of goods manufactured) (Цена то-
вара)
2.15. Operating expenses (Операционные расходы/затраты)
2.16. Net income (Чистая прибыль)
2.17. The statement of changes in cash flows (Отчёт об изменениях
в потоках денежных выплат)
2.18. Directors’report (Отчет совета директоров)
2.18.1 Revenue Account (Отчет о доходах)
2.18.2 Balance Sheet (Балансовая ведомость)
2.18.3 Cash .low Statement (Отчет о движении наличных денег)
2.18.4 Statement of Total Recognized Gains and Losses (Отчет об
общей суммарной прибыли и убытках)
2.18.5 Reconciliation of Movements in Share Holders' .unds (Со-
гласованность движения акционерного капитала)
2.18.6 Notes to the Accounts (Записи по счетам)
2.1
What bookkeepers do
If you were a bookkeeper, the first task you would perform would be
to divide all of the firm’s paperwork into meaningful categories. Those
categories would probably include the following:
· Sales documents (sales slips, cash register recei pts, and invoices).
· Purchasing documents.
· Shipping documents.
· Payroll records.
· Bank documents (checks, deposit sli ps).
· Various expense documents.
If you collected all this information, you would have several piles of
papers, much like the piles that are generated in the preparation of
income tax forms. If this information is not compressed somehow, it will
become too unmanageable. Therefore, the bookkeeper must begin to
record the data from the original transaction documents (the sales sli ps
and so forth) into record books called journals. Journals are the books
where accounting data are first entered. The term journal comes from the
.rench word jour, which means day. A journal, therefore, is where the
day’s transactions are kept.
So a bookkeeper is busy keeping the books of account of a business,
recording a profit and loss account and compiling the balance sheet.
Vocabulary
income tax — подоходный налог
balance sheet — балансовый счет
compile v. — составлять
deposit slips — карточки по вкла-
дам
2.2. Bookkeeping
Bookkeeping is an essential accounting tool. A small business or com-
pany may employ only one bookkeeper, who records all of the finan-
cial data by hand; large organizations may employ many bookkeepers,
who use electronic and mechanical equi pment for a large part of their
work. Each organization has its own bookkeeping requirements, but all
systems operate on the same basic princi ples. The bookkeepers them-
selves must be accurate, good in math, and meticulous; that is, they must
be very careful to record each detail in its proper place
About 3,000 B.C., the Sumerians, the Egyptians, and other peo-
ples of the Middle East developed the first known business records. The
results of tax collections, farming harvests, and the transactions of mer-
chants were recorded by means of written numbers. The Romans, too,
were prolific keepers of records. Indeed, Roman numerals were used in
many parts of Europe until the fifteenth century A.D. The stimulus for
modern bookkeeping came with the introduction of Arabic, or Hindu-
Arabic, numerals and the decimal system in the twelfth century A.D.
Most people today use Arabic numerals.
The two basic systems of bookkeeping are double-entry and single-
entry. The double-entry method was perfected by the merchants of Venice
during the fifteenth century and is still used today.The basic principle
of double-entry bookkeeping is that every transaction has a twofold ef-
fect. In other words, a value is received and a value is yielded or parted
with. Both effects, which are equal in amount, must be entered com-
pletely in the bookkeeping records.
An account is a record of the financial transactions that concern one
item or a group of similar items. The account includes categories of fi-
nancial data for each area of interest during a specific period: the value
at the beginning of a period, changes in value during the same period,
and the value at the end of a period. The broad areas of interest can be
labeled assets, liabilities, and net worth. Income and expense accounts
are totaled at regular intervals, and the resulting profit or loss is post-
ed to a capital account.
SPECIAL TERMS
Liability: An obligation that is owed by an organization: debts to oth-
er organizations for merchandise or services; wages owed to employ-
ees; accrued (owed but not yet paid) taxes; and payments due on loans
or mortgages.
Capital: The investment in an organization or business by its owner
or owners. Other terms often used instead of capital are owners’ equi-
ty, often abbreviated OE, and proprietorship.
Account: A record of the changes and balances in the value of an
individual item listed in the ledger (see next page) of an organization.
An example of an asset account is the company’s furniture and fixtures,
usually listed as one item since it would be impractical to list every desk
and chair. Each account, usually abbreviated a/c, frequently has its own
page in the organization’s ledger.
Double-entry: A method of bookkeeping in which the twofold effect
of every entry is recorded, thus requiring two entries to record each
transaction. By recording both effects of each transaction, this system
offers protection against error.
Single-entry: Any bookkeeping system that does not include the com-
plete results of each transaction. It is usually used by small companies
or to keep track of specific accounts: for example, a checkbook which
only keeps a record of the cash balance.
Debit: An amount entered on the left-hand side of an account. As-
set and expense accounts are increased by debiting, that is, by enter-
ing amounts in the left-hand column. Debit is usually abbreviated DR.
Credit: An amount entered on the right-hand side of an account. Li-
ability, capital, and income accounts are increased by crediting, that is,
by entering amounts in the right-hand column. Credit is usually abbre-
viated CR.
Journal: A book in which transactions are recorded. In double-entry
bookkeeping, both sides of the transaction — both the debit and the
credit side — are entered in the journal.
Ledger: A listing of detailed accounts, such as a record comprising
the accounts receivable of each customer. The general ledger is the book
used to list all the accounts of an organization. Entries from all the jour-
nals are transferred to the ledger at regular intervals, usually monthly.
This process is called posting. The ledger then serves as a summary of
all the fiscal activity for that period.
To .oot: To add or total the amounts in a column.
Trial Balance: When all the transactions for a certain period have
been posted and footed, the debits should equal the credits. The test to
see if this is so is called a trial balance.
Vocabulary
account — счет; счет-фактура;
ledger — бухгалтерская книга
озаглавленный раздел бухгал-
(книга записей) гроссбух, ба-
терской книги
ланс
accrue — увеличиваться, накоп-
liability — пассив; обязательство
ляться, нарастать
contingent liability — условное
asset — актив
обязательство
double-entry — система бухгал-
current liabilities — текущие обя-
терского учета с двойной за-
зательства
писью
deferred liability — отсроченное
обязательство
Vocabulary
longterm liability — долгосрочное
posting — проводка, разноска по
счетам; перенесение из книги
обязательство
первичной записи (Book of
secured liability — обеспеченное
обязательство
Prime entry); перенесение с
loan — заем
другого счета
merchandise — товары
taxes — налоги
mortgage — ипотека; закладная
to foot — прибавить или подсчи-
owners’ equity — общая стоимость
тать общую сумму в правой ко-
всего имущества собственника
лонке счета
payroll — платежная ведомость
trial balance — пробный баланс
payroll tax — налог на заработную
voucher — расписка или любой дру-
плату
гой документ, который про-
водится в бухгалтерских счетах
wages — заработная плата
2.3 What is accounting ?
Accounting is the recording, classifying, summarizing and interpreting
of financial events and transactions to provide management and other
interested parties the information they need to make better decisions.
Transactions include buying and selling goods and services, acquiring
insurance, using supplies. Transactions may be recorded by hand or they
may be recorded in a computer system. Of course, the trend today is to
use computers since the process is often repetitive and complex, and
computers greatly simplify the task.
After the transactions have been recorded, they are usually classified
into groups that have common characteristics. .or example, all purchases
are grouped together, as are all sales transactions. A businessperson is thus
able to obtain needed information about purchases, sales, and other
transactions that occur over a given period of time. The methods used to
record and summarize accounting data into reports is called an accounting
system. Systems that use computers enable an organization to get financial
reports daily if they so desire. One purpose of accounting is to help
managers evaluate the financial condition and the operating performance
of the firm so that they may make better decisions. Another is to report
financial information to people outside the firm such as owners, creditors,
suppliers, employees, and the government (for tax purposes).
In more basis terms, accounting is the measurement and reporting
to various users (inside and outside the organization) financial
information regarding the economic activities of the firm. Accounting has
been called the language of business, which may make you think
accounting is only for profit seeking firms. However, it is also the
language used to report financial information about non-profit
organizations such as churches, schools, hospitals, fraternities, and
governmental units. Accounting can be divided into two major categories:
managerial accounting and financial accounting. An accountant working
for an organization is likely to do both.
Vocabulary
supplier n. — поставщик
purchase n. — покупка приобретение
fraternity n.— братство,
transaction n. — 1) (deal) сделка
студенческая община
2) pl. протоколы,
measurement n. — измерение,
ведомости
размер
evaluate v. — оценивать, выражать
в числах
2.4. Accounting
Anything of value that a business or organization owns is commonly
known as an asset. Asset accounts include cash, which is the money on
hand or in the bank; furniture and fixtures; accounts receivable, the
claims against customers that owe money; stock or inventory; office sup-
plies; and many others that show what the organization owns.
Debts owed to creditors are known as liabilities. If money is owed to
an organization or person for things or services purchased on credit, this
liability is called an account payable. Other liabilities include wages or
salaries that are owed to employees, or taxes that have not yet been paid.
The value of the business to the owner or owners is known as cap-
ital. Other terms used to designate capital are proprietorshi p, owners’
equity (usually abbreviated OE), ownership, or net worth.
A separate account is kept for each asset, liability, and capital item
so that information can be recorded for each of them. Accounts are also
maintained for income and for expenses, and like assets, liabilities, or
capital, these accounts are also entered in the ledger, which is a detailed
listing of all the accounts of an organization. Entries from all the jour-
nals are transferred to the ledger at regular intervals. This process —
called posting — is usually done monthly.
Journals, or books of original entry, are designed to record infor-
mation about different transactions, including sales, purchases, cash
recei pts, cash disbursements, and many others. Journals have two or
more columns to record increases or decreases in the accounts affect-
ed by the transaction, and they often have space for a date and an ex-
planation of the transaction.
All transactions affect at least two accounts. Each transaction must be
analyzed to determine which accounts are affected, and whether they
should be increased or decreased. An entry made on the left-hand side
or column of an account is called a debit, while an entry made on the
right-hand side or column is a credit. Debit, usually abbreviated DR, at
one time meant value received, or literally he owes. Credit, usually ab-
breviated CR, meant value parted with, or literally he trusts. In mod-
ern bookkeeping, debit refers only to the left-hand side of an account,
whereas credit refers to the right-hand\x7320\x6469\x2E65\x5320\x6D6F\x2065\x6F62\x6B6F\x656B\x7065\x7265\x2073\x7375\x2065\x2061\x6166\x0D72\x6972\x6867\x2D74\x6168\x646E\x6320\x6C6F\x6D75\x206E\x6F74\x6B20\x6565\x2070\x6E61\x7520\x2D70\x6F74\x642D\x7461\x2065\x6162\x616C\x636E\x2065\x666F\x7420\x6568\x6120\x6363\x756F\x746E\x0D2E\x6F56\x6163\x7562\x616C\x7972
increase (v) — возрастать, увели-
expense (n) — трата, расход
чивать
proprietorship (n) — собствен-
decrease (v) — уменьшать
ность
income (n) — приход, доход
(обычно годовой)
CASH A/C
EXPLANATION
DR.
CR.
BALANCE
DATE
9/1/77
Cash in Bank
412.50
9/2/77
Cash Sales
254.56
667.06
Rent Paid
500.00
167.06
9/3/77
Bank Loan
5000.00
5,167.06
9/4/77
Sales Tax Paid (Aug. 1977)
187.60
4,979.46
Payroll
1,000.00
3,979.46
Cash Sales
612.00
4,591.46
мA
cash journal
rom the basic accounting formula, that is, assets = liabilities +
+ owners’ equity (or capital), certain guidelines have evolved through
general agreement and custom. Asset accounts are increased by debiting,
that is, on the left side, and they are decreased by crediting, that is,
on the right side. The opposite is true for liability and proprietorshi p
accounts, which are increased on the credit side and decreased on the
debit side.
Assets
=
Liabilities
+
Owners’ Equity
Asset A/C’s
Liability A/C’s
Proprietorshi p A/C’s
DR
CR
DR
CR
DR
CR
+
–
–
+
–
+
Income and expense accounts represent changes in equity. Income
increases proprietorship, while expenses decrease proprietorship. Income
accounts are increased on the credit side and decreased on the debit side,
while expense accounts are increased on the debit side and decreased on
the credit side.
Expense A/C’s
Income A/C’s
DR
CR
DR
CR
–
+
+
–
Since every transaction affects at least two accounts, at least two en-
tries must be made in the journal. When Morgan’s Appliance Store, for
example, sells a refrigerator for $260, the bookkeeper debits the cash
account (asset) and credits the sales account (income) by $260. On the
day that Mr. Morgan pays his monthly rent of $500, the bookkeeper
debits the rent account (expense) and credits the cash account (asset)
by $500.
Regularly and at fixed intervals, usually monthly, the bookkeeper
posts all the entries from each journal to the appropriate account in the
general ledger. The bookkeeper then foots, or totals, the columns of
each account; that is, he or she adds the amounts of the debits and
credits, and records the balance of each account. Since debits are always
recorded in amounts equal to credits, the debits and credits should al-
ways equal each other. The test that determines whether the total of
debits equals the total of credits is called a trial balance. If the accounts
are not balanced, some error has been made which the bookkeeper
must find and correct. The financial statements of a company help man-
agement to evaluate and direct the operations of an organization.
The second basic system of bookkeeping, as mentioned previous-
ly, is called the single-entry method. The method refers to any sys-
tem that does not include the complete results of every transaction. The
most common type of single-entry bookkeeping involves records of
.
cash, accounts receivable, and accounts payable.
Many bookkeeping systems include journals and records for specific
types of transactions. Special purchase books, for example, include
invoice and voucher registers. Invoices are itemized statements of mer-
chandise sold to a customer; they list the quantity and the charges.
Vouchers are bills received for merchandise or services. One impor-
tant, widely used journal is a cash disbursement register, which records
the details of all checks written: to whom, when, how much, and for
what purpose. Another popular journal is the cash recei pts journal,
in which all payments received are recorded.
Bookkeepers are also responsible for maintaining the records of a
company, including, of course, the completion of taxes that are to be
deducted and withheld, and the completion of government forms that
are required for tax and other employment purposes. In a small com-
pany, the bookkeeper may also function as a cashier, as an assistant
to the manager, or in any number of clerical jobs. Larger firms have
staffs of bookkeepers ranging from as few as two or three to several
hundred. They often use special forms and high-speed computing and
tabulating machines, but basic bookkeeping rules are the same. Regard-
less of the size of the operation, the bookkeeper is a key person in the
organization’s system of financial information.
Vocabulary
deduct (v) — вычитать; удержи-
compute (v) — считать; подсчи-
вать
тывать; вычислять; делать
withhold (v) — удерживать; оста-
выкладки
навливать
tabulate (v) — сводить в таблицы
2.5 Managerial accounting
Managerial accounting is used to provide information and analyses
to managers within the organization to assist them in decision making.
Managerial accounting is concerned with measuring and reporting costs
of production, marketing, and other functions (cost accounting);
preparing budgets (planning); checking whether or not units are staying
within their budgets (controlling); and designing strategies to minimize
taxes (tax accounting).
Simple analyses of corporate figures can disclose very important
information. .or example, a slight month-to-month increase in payroll
costs may not appear significant.But multiply that increase by 12 months,
and the increase in costs can be disastrous. Monitoring figures such as profit
margins, unit sales, travel expenses, cash flow, inventory turnover, and
other such data is critical to the success of a firm. Top management's decision
making is based on such data. The question that managerial accounting
reports are designed to answer include the following:
What goods and services are selling the most, and what promotional
tools are working best?
How quickly we are selling what we buy, and how does that compare
with other firms in the same industry?
How much profit is the firm making, and does that compare
favourably with other firms? If not, why not?
What are our major expenses, and are they in line with what other
firms spend?
How much money do we make on the investment the owners have
made in the firm, and does that compare favourably with other firms
in the same industry? If not, why not?
How much money are we paying in taxes, and how can we legally
minimize that amount?
Will we have enough cash at the end of each month this year to
pay our bills and, if not, have we made arrangements to borrow that
money somehow?
Are our costs of doing business in line with the costs of other firms
in the industry and if not, why not?
If you are a business major, it's almost certain you will be required
to take a c\x756F\x7372\x2065\x6E69\x6D20\x6E61\x6761\x7265\x6169\x206C\x6361\x6F63\x6E75\x6974\x676E\x202E\x6957\x6874\x6720\x6F72\x6977\x676E\x6520\x706D\x6168\x6973\x2073\x6E6F\x670D\x6F6C\x6162\x206C\x6F63\x706D\x7465\x7469\x6F69\x2C6E\x6320\x6D6F\x6170\x796E\x6420\x776F\x736E\x7A69\x6E69\x2C67\x6120\x646E\x6F20\x6772\x6E61\x7A69\x7461\x6F69\x616E\x206C\x6F63\x7473\x630D\x7475\x6974\x676E\x202C\x616D\x616E\x6567\x6972\x6C61\x6120\x6363\x756F\x746E\x6E69\x2067\x616D\x2079\x6562\x6F20\x656E\x6F20\x2066\x6874\x2065\x6F6D\x7473\x6920\x706D\x726F\x6174\x746E\x630D\x756F\x7372\x7365\x7920\x756F\x7320\x7574\x7964\x6920\x206E\x6F79\x7275\x6320\x6C6F\x656C\x6567\x6320\x7261\x6565\x0D72\x6F56\x6163\x7562\x616C\x7972
assist v. — помогать,
margin n. — 1) край; (off page)
содействовать,
поле (usu. pl.)
принимать участие
2) запас, коэффи-
disclose v. — открывать,
циент
раскрывать; обнаруживать
3) чистая прибыль
payroll n. — платежная
favourable — благоприятный,
ведомость
благосклонный
a favourable report — положитель-
ный отчет
2.6 .inancial accounting
.inancial accounting differs from managerial accounting because the
information and analyses are for people outside of the organization. This
information goes to owners and prospective owners, creditors and lenders,
employee unions customers, suppliers, governmental units, and the
general public. These external users are interested in the organization's
profits, its ability to pay its bills, and other financial information. Much
of the information is contained in the annual report, a yearly statement
of the financial condition and progress of the organization. Various
quarterly reports keep the users more current. .inancial accounting
reports answer such questions as the following:
Has the company's income been satisfactory? Should we invest in
this company?
Should we loan money to this company? Will it be able to pay the
money back?
Can the company afford to raise its salaries? Is it financially strong
— будущий, пред- external (adj.) — внешний
полагаемый, ожидаемый
annual report —годовой отчет
warranty (n.) — основание, гаран-
2.7 Accouting versus bookkeeping
Bookkeeping involves the recording of business transactions. It is a rather
mechanical process and does not demand the financial training and insights
of accounting. Bookkeeping is an important part of accounting, but
accounting goes far beyond the mere recording of data. Accountants classify
and summarize the data provided by bookkeepers. They interpret the data
and report them to management. They also suggest strategies for improving
the financial condition and progress of the firm. Accountants are especially
valuable for income tax preparation and financial analysis.
Now that you have some understanding about what accountants do
and for whom they do it, we can get down to the fundamental aspects
of bookkeeping and accounting. Accounting, remember, involves the
gathering and recording of transactions (for example, the sale of
merchandise, the payment of a bill, or the receipt of merchandise into
storage), and the periodic preparation of financial statements that
summarize those transactions. While reading the texts the goal is not to
learn how to be an accountant, just to learn the terms and concepts.
Vocabulary
insight n. — проницательность; по- interpret v. — толковать, истолко-
нимание
вывать
summarize v. — суммировать; резю- merchandise n. — товары (m. pl.)
мировать; подводить итог
Vocabulary
Practice
1. What is a liability? What are some examples of liabilities?
2. What does capital mean? What other terms are often used instead
of capital?
3. What is an account? Give an example of an account. What
abbreviation is commonly used for account?
4. What is double-entry bookkeeping? How does it differ from single-
entry bookkeeping?
5. What is a debit? What kind of accounts are increased by debiting?
What abbreviation is commonly used for a debit?
6. What is a credit? What kind of accounts are increased by crediting?
How is it commonly abbreviated?
7. What is a journal? In double-entry bookkeeping, what is entered in
the journal?
8. What is a ledger? What is the relationshi p of a journal to a ledger?
What does posting mean?
9. What does to foot mean?
10. What is a trial balance?
Discussion
1. How do bookkeeping procedures in a large organization differ from
those in a small one? Are the basic principles the same or different?
2. What are some of basic the requirements for a bookkeeper?
3. When were the first known business records kept? By whom? What
kinds of records were kept?
4. How did modern bookkeeping begin?
5. What are the two basic methods of bookkeeping?
6. When was the double-entry method introduced? By whom? What
is its basic princi ple?
7. What is an account? What are the three categories of financial data
listed in an account?
8. What broad areas of interest is bookkeeping concerned with?
9. What is the difference between an asset and a liability? Give an
example of each.
10. What is the term used for the value of a business to its owner? What
other terms refer to |
