7. What is the yardstick method?
a. How does it work in general?
b. Why is this method not practical? Historically how have yardsticks worked?
Yardstick method-
The yardstick method is generally used in court cases, especially
in cases of contract breaches, patent infringements, claims for
damages and so on. It is based on the comparison with similar
businesses.
In cases where the court is trying to determine the damages or loss
of revenue, the court hires financial experts to estimate the value
of damage or revenue lost by the plaintiff if the wrongdoings
(contract breaches, patent infringements etc.) by the defendant
were not there.
This method uses data for similar companies or industry average as
a guideline. The lost revenue or damage is then calculated as per
this guideline company or industry standard. In other words, the
experts compare the plaintiff’s actual performance with the results
it could have reasonably anticipated 'but for' the defendant’s
wrongdoing, based on the performance of other companies in the same
industry.
There are two important points to be notes in this method- first,
the expert should establish the guideline companies which have
performed very similar to the company being compared in the past.
The guideline companies and the plaintiff's company need to be
similar enough to use the yardstick method.
There are some shortcomings of this method. This method can not be
used in the case of smaller companies, start ups, niche companies
and as well as very large companies. These are basically the
companies that do not have a comparable company in the market
because of their size and/ or business model.
This methods is used frequently in court cases. One such case is
the Under Armor case. In this case, the court allowed the revenue
lost by a relatively new company Under Armor with a guideline
company- MTV under the yardstick method.
7. What is the yardstick method? a. How does it work in general? b. Why is this method not practi...
What does heat do?
7. How did the
methyl end up in the product?
8. why does the methyl add to the beta carbon?
9. Why does the double bond occur?
Thanks!
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