Indian Automobile Industry Analysis Essay Example for Free

Indian Automobile Industry Analysis Essay Today the automobile sector in India contributes 5% to the nation’s GDP, making it a prominent player in the economy. It will contribute around 19% of the Tax collection for financial year 2009-10. Following have been the features of Auto industry in the past financial year. The following tables and charts consist of the performance of Auto industry in past few years. Industry Aggregate (Rs in million)| | AMJ 10 (E)| Net Sales| 363904. 38| Change (%)| 39%| EBITDA| 64665. 22| Change (%)| 94%| Depreciation| 7303. 60| Interest| 3348. 58| Other Income| 7118. 93| PBT| 61131. 97|. Tax| 16645. 21| Effective tax rate| 27%| Reported PAT| 44486. 77| Change % (Reported PAT)| 92%| Market Cap (Rs in bn)| 1647. 17| Source: BSE India; Cygnus Research| Note: The aggregate consists of the following companies- Bajaj Auto, Ashok Leyland, Tata Motors, TVS Motors, Force Motors, Hero Honda, Escorts Ltd. , Eicher Motors, Maruti Udyog Limited, Punjab Tractors Limited, Mahindra Mahindra, and Hindustan motors Source: QPAC Indian Automobile industry Apr-Jun 2010 INDIAN AUTOMOBILE INDUSTRY AND TRENDS Overview The auto industry in India is the ninth largest in the world. After Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. The Indian automobile industry is going through a phase of rapid change and high growth. With new projects coming up on a regular basis, the industry is undergoing technological change. The major players are expanding their plants and focusing on mass customization, mass production. Yearly-Analysis Year on year as the Indian population grows the requirement for the transportation will also grow, so it is clear that the industry demand is directly proportional to the population. Presently in India there are 100 people per vehicle while the figure in china is 82. Indian automotive industry is strong and productive sector for the economy growth. It gives nearly 5% of the employment to the country’s population. Continue improving quality results in exports of automobile and ancillary industry is boosting out the demand in oversees business. The Indian auto-players are expanding their presence in oversees market. In the last 5 years the foreign investment in this sector nearly doubled. Production Trend: The Indian automotive industry face a tough time during FY08 and its production were almost stagnated. From the early FY09, the industry started showing marginal growth in terms of production and reached to 14. 04m units till FY10. Due to the huge insist in the domestic market company’s sale nearly 88% of their total production in the country and rest 12% vehicles they export. Domestic and Exports sales trend: In terms of domestic sales the industry is showing positive approach from the last 3-years. During FY10 the industry domestic sales reached to 12. 29m units. The Indian exports are increasing gradually form the past 5-years and reached to 1. 80m units in FY10. Earlier the industry depended on the foreign auto parts, but due to the increase of the global players in the country and establishing the plants ended painless move to the Indian auto-players. INDUSTRY PERFORMANCE (YEARLY) Indian Automobile Industry Performance (Apr-Mar)| | Production| Domestic Sales| Exports| | 2009| 2010| %| 2009| 2010| %| 2009| 2010| %| Passenger vehicles (PVs)|. Passenger Cars| 1516967| 1926484| 27| 1220475| 1526787| 25| 331535| 441710| 33| UVs| 219498| 272848| 24| 225621| 272733| 21| 3034| 2823| -7| MPVs| 102128| 151908| 49| 106607| 150256| 41| 1160| 1613| 39| Total PV| 1838593| 2351240| 28| 1552703| 1949776| 26| 335729| 446146| 33| Commercial vehicles (CVs)| MHCVs| | | | | | | Passenger Carriers| 40995| 46026| 12| 34892| 43081| 24| 7456| 6069| -19| Goods Carriers| 151288| 204145| 35| 148603| 201977| 36| 9363| 14354| 53| Total MHCVs| 192283| 250171| 30| 183495| 245058| 34| 16819| 20423| 21| LCVs| | | | | | |. Passenger Carriers| 28635| 34751| 21| 26952| 34421| 28| 5426| 2708| -50| Goods Carriers| 195952| 281686| 44| 173747| 251916| 45| 20380| 21876| 7| Total LCVs| 224587| 316437| 41| 200699| 286337| 43| 25806| 24584| -5| Total CVs| 416870| 566608| 36| 384194| 531395| 38| 42625| 45007| 6| 3-wheelers| Goods Carriers| 417434| 530203| 27| 268463| 349662| 30| 146914| 172505| 17| Total 3-Wheelers| 79586| 88890| 12| 81264| 90706| 12| 1152| 777| -33| Grand total| 497020| 619093| 25| 349727| 440368| 26| 148066| 173282| 17| 2-Wheelers|. Scooter| 1161276| 1494409| 29| 1148007| 1462507| 27| 25816| 30125| 17| Motorcycles| 6798118| 8444852| 24| 5831953| 7341139| 26| 971018| 1103104| 14| Mopeds| 436219| 571070| 31| 431214| 564584| 31| 7300| 6905| -5| Electric Two Wheel| 24179| 2558| -89| 26445| 3001| -89| 40| 50| -| Total 2-Wheelers| 8419792| 10512889| 25| 7437619| 9371231| 26| 1004174| 1140184| 14| Grand Total| 11172275| 14049830| 26| 9724243| 12292770| 26| 1530594| 1804619| 18| source: SIAM; Cygnus Research| Demand-supply mismatch: The new capacity addition till 2012, may anticipate a demand and supply mismatch in the short term. Demand is only expected to grow by 10-12% every year. In 2009-10 the domestic auto industry was utilizing 80-85% of its capacity, but this may drop to 65% by 2012. India may be in a similar position in 2012 as the global auto industry is in right now. The global capacity utilization in 2009-10 was around 65%, down from 80% in 2008-09. In the near future it is expected that the mismatch is going to see between Demand and Supply. Capacity addition: Accoding to Fitch Ratings, by 2012, the existing players in the market are expected to add 0. 9m units to the 2. 6m units’ capacity of the passenger vehicle segment and 0.6m units to the 0. 75m units’ capacity of the commercial vehicle segment. Meanwhile, global automakers who currently only assemble in India, are expected to set up production units, in order to be more competitive with local players. Quarterly-Analysis Production Trend During AMJ10, the segmental market size of 2-wheeler stood at 77%, followed by Passenger vehicles at 16% and then followed by 3-wheelers at 4%. In this quarter the total industry production increased by 33. 27 to 4. 09m units from 3. 06m units in the previous year same period. The commercial vehicle segment production has increased by 57. 11% to 0.16m units and recorded top among the segments. Sales and Exports Trend From the past two years the sale of the vehicles are increasing during this quarter due to the domestic demand made by the festive season and the exports are declining. In terms of sales commercial vehicles sales had increased by 55% during AMJ10 and stood in top against AMJ09. Passenger vehicle sales increased by 33% next to Commercial Vehicles and stood at 0. 55m units followed by 2 and 3-wheelers. The total Indian automobile exports during AMJ10 increased by 59. 30% to 0. 58m units against 0. 36m units. The 3-wheeler segment stood in top in- terms of exports by 150. 33% increase followed by C. V and P. V. SEGMENTAL ANALYSIS OF THE INDUSTRY (QUARTERLY) Automobile Sales Performance in AMJ (in terms of Volume)| I PASSENGER VEHICLES| | AMJ09| AMJ10| % change| A. Passenger Cars| 324,985| 433,641| 33%| B. UVs| 60,969| 76,432| 25%| C. MPVs| 31,965| 44,493| 39%| TOTAL (A+B+C)| 417,919| 554,566| 33%| II. COMMERCIAL VEHICLES (CVs)| MHCVs| | | | A. Passenger Carriers| 7,482| 11,574| 55%| B. Goods Carriers| 31,408| 59,642| 90%| TOTAL (A+B)| 38,890| 71,216| 83%| LCVs| | | | A. Passenger Carriers| 9,601| 11,566| 20%| B. Goods Carriers| 48,376| 67,095| 39%| TOTAL (A+B)| 57,977| 78,661| 36%|. TOTAL COMMERCIAL VEHICLES (CVs)| 96,867| 149,877| 55%| III. THREE WHEELERS| A. passenger carrier| 72,339| 84,298| 17%| B. goods carrier| 18,963| 20,855| 10%| TOTAL (A+B)| 91,302| 105,153| 15%| IV TWO WHEELERS| A. scooters| 317,400| 470,323| 48%| B. motor cycles| 1,689,716| 2,097,415| 24%| C. mopeds| 128,738| 157,588| 22%| TOTAL (A+B+C+D)| 2,135,854| 2,725,326| 28%| Total volume (units)| 2,741,942| 3,534,922| 29%| Source: SIAM; Cygnus Research| SEGMENTAL PERFORMANCE Two-wheelers Note: Demand is expected on the base of country population bases and the base year is taken as 2000 for projections. The Indian 2-wheeler industry has reported a 26% (Y-o-Y) growth in FY10 with sales at 9. 37m units as against 7. 43m units sold in FY09. On the exports front, the 2-wheeler industry with 1. 14m shipments in FY10 posted a growth of 14% (Y-o-Y). Hero Honda Motors Ltd. (HHML), the worlds largest two wheeler manufacturer continued to dominate the total 2-wheeler industry with a market share of 48. 10%. In the motorcycle segment, the domestic sales grew 26% (Y-o-Y) to 7. 34m units while the exports grew 14% (Y-o-Y) to 1. 10m shipments in FY10. Hero Honda dominated the motorcycle space with a market share of 44% followed by Bajaj Auto (21%) and TVS Motors (15%). Market Penetration The two-wheeler industry is growing at a good phase in the country and expected a presence of 92 per every 1000 people at the end of 2010. The segment expects huge demand in the next 5 years. The industry is expected to sell nearly 26. 56m units till 2015. The segment is expected to face a tough time in 2011, due to the heavy compilation by the low cast cars and the alternative electronic vehicles. From 2012 the segment is expected to grow at the CAGR of 19% till 2015. Segment Boosters. New launches, coupled with low base and festive (marriage) season, helped the 2- wheeler industry post an impressive volumes growth for the month of May 2010. While the low base helped Bajaj Auto Ltd. (BAL) posts a growth of 62% (Y-o-Y) in total sales over the same month of the last fiscal. Three Wheelers The 3-wheeler industry posted an impressive growth of 26% (Y-o-Y) to 0. 44m units in FY10 as against 0. 34m units sold in the last fiscal. On the exports front, the 3-wheeler industry reported 17% (Y-o-Y) growth with 0. 17m units shipments in FY10. The passenger carrier segment reported higher growth in the domestic market at 0. 34m units 30% (Y-o-Y), while the goods carrier segment posted a 12% (Y-o-Y) growth for FY10. On the exports front, the passenger carrier segment posted a 17% (Y-o-Y) growth with 0. 17m unit shipments, while the goods segment posted a 33% (Y-o-Y) decline with exports of 777 units in FY10. Market share and players performance: Piaggio Vehicles continued to dominate the 3-wheeler industry with a market share of 41% followed by Bajaj Auto (35%) and Mahindra Mahindra (11%). In this 3-wheeler segment 81% sub-segment is captured by Passenger carriers, which is primarily for the rural people moving long distances. The remaining 19% is covered by cargo or goods carriers; there are the versatile vehicles suitable for both intra and inter-city transport. Segment Boosters In suburban and rural areas 3-wheelers are primarily used as substitutes for buses. They thrive because of very poor public transport and on shorter trip distances. Some of the opportunities of this segment are; the inability of state government to provide the required number of buses, lack of political will to privatize public transport and free up fares. Increasing number of 3-wheelers on these routeswill bring download availability form 10-12% to 6-8%, people for 80% of the trips. PRINCIPLE APPLICATION OF 3-WHEELERS| Segments| Primary uses| Fuel used| Forecasted 3-yearsCAGR| In-city| Home-Office,Home-shopping,Schoolchildren, Home-Railways or Air port. | Petrol/LPG/CNG| 10%| Rural| Stage coach| Diesel| 11%| Cargo| Wholesaler to retailerRetailer to end user distribution| Diesel/CNG| -6%| Growth drivers and Indian in the world automobile industry (2010) Growth Drivers of Indian Auto Market| India in world production| ? Rising industrial and agricultural output? Rising per capita income? Favourable demographic distribution with rising working population and middle class? Urbanisation? Increasing disposable incomes in rural agri-sector? Availability of a variety of vehicle models meeting diverse needs and preferences? Greater affordability of vehicles? Easy finance schemes? Favourable government policies? Robust production| ? Well-developed, globally competitive auto ancillaryindustry? Established automobile testing and RD centers? Among one of the lowest cost producers of steel in the world? Worldssecondlargestmanufactureroftwo wheeler? Fifthlargestmanufacturerofcommercial vehicles? Largest manufacturers of tractors in the world? Fourth largest passenger car market in Asia? India is the second largest two-wheeler market in the world.? 11th largest passenger car market in the world? Expectedtobetheseventhlargestauto industry by 2016| Inter- firm Comparison: Two – Wheelers Operational Performance The sales figure of Hero Honda is estimated to increase by 33. 73% in revenue terms from Rs3824. 40m in AMJ09 to Rs51116. 77m in AMJ10. Hero Honda scooter segment, pleasure sales have been growing at an average of 16000 units per month, it also crossed its land mark of 4. 5m unit sales for FY10. Bajaj Auto is estimated to show a sharp increase in sales figure by 33% from Rs 233384. 70m in AMJ09 to Rs31230. 88m in AMJ10, this has been led by its two game changing brands, Pulsar and Discover, with clocked robust volumes. TVS Motors is estimated to show an increase of 34% in sales from Rs9886. 97m in AMJ09 to Rs13254. 32m in AMJ10. Its scooter and motorcycle segment sales grew by 24% and 15% respectively; exports were increased by 22% to 20067 units during May. The newly launched TVS Jive and the TVS Wego have supported better volume growth for the month of March. Two-Wheeler Rs (m)| | AMJ 09 (A)| AMJ 10 (E)| Growth| Bajaj Auto| 23384. 70| 31230. 88| 33. 55| Hero Honda| 38224. 40| 51116. 77| 33. 73| TVS| 9886. 97| 13254. 32| 34. 06| Source: BSE India; Cygnus Research| Financial Performance The overall sale of all the companies is expected to rise. In case of TVS Motors OPM will improve mainly due to reduction in other expenses and raw material cost. The operational performance of Hero Honda has also improved and is directly reflected in its OPM and NPM growth which has increased by 837bps and 486bps respectively. Bajaj Autos OPM and NPM have been increased by 94bps and 170 bps points respectively. Overall in terms Hero Honda stood in top position in terms of operational and financial performance. | Bajaj Auto| Hero Honda| TVS| | AMJ 09 (A)| AMJ 10 (E)| AMJ 09 (A)| AMJ 10 (E)| AMJ 09 (A)| AMJ 10 (E)| Net sales| 23384. 70| 31230. 88| 38224. 40| 51116. 77| 9886. 97| 13254. 32| NPM (%)| 12. 55| 14. 25| 13. 08| 17. 95| 1. 84| 2. 85| OPM (%)| 18. 45| 19. 38| 17. 01| 25. 38| 6. 33| 6. 01| Source: BSE India; Cygnus Research| Cost Structure Analysis Cost Structure (as % of Net sales) AMJ09 Vs AMJ10| Company| Hero Honda| Bajaj Auto| TVS Motors| Industry| Year| 09| 10| 09| 10| 09| 10| 09| 10| (Increase)/Decrease in Stock| 0. 33| -2. 33| 2. 04| 1. 34| 3. 15| 4. 49| -0. 74| 0. 68| Consumption of raw materials| 67. 42| 62. 86| 60. 60| 64. 04| 67. 61| 60. 50| 65. 91| 62. 41| Purchase in stock in trade| 0. 00| 0. 00| 3. 51| 3. 67| 1. 62| 1. 88| 4. 44| 5. 55| Staff cost| 3. 62| 2. 76| 4. 83| 2. 98| 5. 29| 4. 87| 5. 34| 3. 86| Other expenditure| 11. 62| 11. 32| 10. 57| 8. 59| 15. 99| 22. 26| 12. 33| 9. 73| Depreciation| 1. 19| 0. 86| 1. 41| 0. 12| 2. 57| 1. 89| 2. 63| 2. 01| Interest Financial Charges| -0. 14| -0. 10| 0. 26| 0. 00| 1. 73| 0. 91| 1. 25| 0. 92| Tax| 3. 99| 7. 69| 5. 22| 6. 11| 0. 19| 0. 76| 2. 62| 4. 57| Source: BSE India; Cygnus Research|. Raw material cost forms the major chunk of cost for two-wheeler companies followed by other expenditure, staff cost. In terms of raw material, staff cost and other expenses the performance of Bajaj is better compared to its peers. Overall, Bajaj auto is efficient from operational point of view. It has declined its overall cost structure by 159 bps to 86. 84% from 88. 44% as the percentage of sales during AMJ09. Porter Five Forces model Here is the analysis of Auto Industry with help of the porter’s five forced model. This is common for auto industry in India. Supply | Some amount of excess capacity.while India would be capable of producing 5. 4 m cars a year by 2014, domestic demand is likely to edge up to between 3. 5 and 4. 8 m units. | Demand | Largely cyclical in nature and dependent upon economic growth and per capita income. Seasonality is also a vital factor. | Barriers to entry | High capital costs, technology, distribution network, and availability of auto components. | Bargaining power of suppliers | Low, due to stiff competition. | Bargaining power of customers | Very high, due to availability of options. | Competition | High. Expected to increase even further. | Now if we make the five-force model for two wheelers:

An Analysis of the Hurricane Catrina Relief Effort Essay -- foreign ai

In a state of national emergency, the United States government is expected to be efficient and organized. When Hurricane Katrina struck on August 25th, 2005, the United States government was not readily prepared for such an immense disaster. The mismanagement of relief efforts by the U.S. government led to a lack of adequate assistance to U.S. victims along with a prolonged restoration period for those in need. Had the government accepted more foreign aid and further prepared for the storm, hurricane Katrina may not have proved such a disaster in our nation’s history. This essay will explain how foreign aid was integrated into the relief effort. Additionally, this essay will explore the government’s refusal of aid from various countries willing to provide assistance and the lessons that can be learned from our nation’s actions in the aftermath of Katrina. In August of 2005, no one could predict the brutality and intensity of the natural disaster that was about to strike the city of New Orleans. Hurricane Katrina, known as one of the top natural disasters in our nation’s history, filled the city of New Orleans with water, leaving it a disaster area. Thousands of people’s lives were turned upside down by the damage and devastation that occurred from the impact of the storm. With a storm surge entering the city over 20 feet high, residents were forced to flee and abandon their Louisiana lifestyles. The Port of Mobile in Alabama, which did not even endure the full impact of the storm, sustained an estimated 28 million dollars in damages alone due to the storm (GAO 2006). Although an official estimate was not released, the total economic impact from Katrina is predicted to be around $150 billion in total damages (Kenny, 2013), an i... ...alth Reports 123(5):555. Kelman, Ilan. 2007. "Hurricane Katrina Disaster Diplomacy." Disasters 31(3):288-309. McNeill, Jena. 2/7/2011. "Accepting Disaster Relief from Other Nations: Lessons from Katrina and the Gulf Oil Spill." The Heritage Foundation:3/1/14. Nation Master. 4/18/2006. "International Aid Response: Countries Compared." Nation Master:3/1/14. Provost, Claire. 4/6/2011. "Aid from OECD Countries - Who Gives the most and how has it Changed?." The Guardian Data Blog:3/1/14. Robillard, Kevin. 10/3/12. "10 Facts about the Katrina Response." Politico:3/1/14. Solomon, John. 4/30/2007. "U.S. Refused most Offers of Aid for Hurricane Katrina." The New York Sun:3/1/14. Walker, David. 3/8/2006. "Hurricane Katrina - GAO’s Preliminary Observations regarding Preparedness, Response, and Recovery." United States Government Accountability Office:3/1/14.

Plaw 210 Memorandum of Law Essay

You asked me to answer the question, â€Å"Are the Virginia courts likely to follow the unconscionability doctrine as set out and applied in Jones v. Star Credit Corp.†, based on the opinion and rulings of previous similar cases. SHORT ANSWER The Virginia courts are highly likely to follow the unconscionability doctrine that has been set out and applied in Jones v. Star Credit Corp. The Jones purchased a freezer unit from Star Credit Corp for $900, three times the retail value of the unit. In this case, the court held that the contract between parties was unconscionable because it violated [HN2] U.C.C.  § 2-302 (1964), which is set in place to prevent the oppression and unfair surprise of the consumer. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) The U.C.C.  § 2-302 (1964) enacted the moral sense of the community into the law of commercial transactions. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) There was no fraud involved in this case. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) [HN6] U.C.C.  § 2-302 explains that the meaningfulness of choice essentials to the making of a contract can be negated by a gross inequality of bargaining power. Jones v. Star Credit Corp., 298 N .Y.S.2d 1 (Sup. Ct. 1969) Since the salesman was aware of the plaintiff’s limited financial funds, and coerced them into signing the agreement, then that agreement is deemed unconscionable under this law. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) ANALYSIS 1. Jones v. Star Credit Corp. Standard of Unconscionability Plaintiffs Clifton Jones and his wife, both welfare recipients, purchased a $900.00 home freezer unit, with a maximum retail value of $300.00, for a total of $1,234.80. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) Their income is grossly unequal to the salesman. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) The total price of the home freezer unit included the credit charges, credit life insurance, credit property insurance, and  sales tax. Id. Their first payment towards this unit was $619.88. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) Star Credit Corp, the Defendant, claims that with the various added credit charges paid for an extension of time the Jones still owes a balance of $819.81 Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) The credit charges alone exceed more than $100.00 the retail value of the unit. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 196 9) Plaintiff argues that the sales agreement was unconscionable according to the Uniform Commercial Code, U.C.C.  §2-302 (1964), which is intended to encompass the price term of an agreement. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) As welfare recipients, the Plaintiff(s) has/have limited finances; therefore the Defendant was able to take advantage of [them]. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969). This was taken into consideration, also whether or not an exploitive and callous act had taken place. Id. â€Å"The very limited financial resources of the purchaser, known to the sellers at the time of the sale, is entitled to weight in the balance. Indeed, the value disparity itself leads inevitably to the felt conclusion that knowing advantage was taken of the plaintiffs.† Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969). The court ruled in the Plaintiffs favor, declaring that the defendant has been amply compensated by the $600.00+ already paid. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) The court believes that the sale of a freezer unit having a retail value of $300.00 being sold for $900.00, not including credit charges and $18.00 sales tax is unconscionable as a matter of law. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) a. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) Sandra A Derby was seeking a divorce from her husband, George E. Derby, of 22 years. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) Husband filed a cross-bill on claims of his wife’s adultery, and persuasion to sign a property settlement agreement without consultation with counsel. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) The husband claimed he was coerced into signing the papers with a false pretense of his wife’s eventual return to the family home. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) In this case, Sandra A. Derby had been married to George E. Derby, Jr. for 22 years before seeking a divorce alleging cruelty. Derby v. Derby, 378 S.E. 2d  74 (Va. Ct. App. 1989) The wife managed to persuade her husband to amend their property settlement agreement, allowing her to receive the entire value of essentially all of the valuable real estate that they owned. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) This took place in a parking lot with no consultation or counselor present. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) The husband explained that he signed the agreement because he thought if he did, his wife would return to the home. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) Evidence of his wife’s adultery was presented at trial and the husband was granted a divorce on that ground by the trial court. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) The trial court also held that the separation agreement was invalid due to terms of unconscionability and constructive fraud or duress. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) The courts applied this rule because a contract can be deemed unconscionable if â€Å"oppressive influences affected the agreement to the extent that the process was unfair and the terms of the resultant agreement unconscionable.† Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) Also, the separation agreement can be held as invalid because â€Å"marriage and divorce create a relationship which is particularly susceptible to overreaching and oppression.† Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) This case applied to Jones v. Star Credit Corp. b ecause the plaintiff was taken advantage of by the defendant. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) The wife had knowledge of inflicted emotional distress on her husband when she coerced him to sign the agreement. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) The trial judge held, and the evidence supports that finding, that Mrs. Derby, â€Å"played upon the weakness of her husband and his desire to reconcile† to exact Mr. Derby. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) The Virginia court affirmed the order granting the divorce and invalidating the separation agreement. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989)The court affirmed the order for divorce on grounds of adultery, also holding that the separation agreement was unconscionable due to credible evidence. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) b. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) In this case, Beckner and her husband entered into a commercial lease with Friendly Ice Cream Incorporation commencing in 1976 with an original term limit of 15 years. Friendly Ice Cream Corp. v.  Beckner, 597 S.E. 2d 34 (Va. 2004) Lease required annual payment of 2% of the store’s g ross earnings above $275,000. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) In 2002, Mrs. Beckner signed agreement to redevelop the property. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) Shortly after, Beckner’s son indicated concern for his mother’s actions, thus requesting the documents be considered invalid and withdrawn for further consideration. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) This is considered establishing a prima facie case of undue influence. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) If the party seeking rescission of the deed or contract produces clear and convincing evidence of great weakness of mind and grossly inadequate consideration or suspicious circumstances, and absent sufficient rebuttal evidence, is entitled to rescission of the document. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) The trial court found that Beckner suffered from â€Å"great weakness of mind† and the consideration was grossly inadequate and the transaction had taken place under suspicious circumstances; however court found no support of a grossly inadequate compensation. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) The Virginia court found, on the contrary, that the lesser, Beckner, was a business woman. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) On March 22, 2002, Ms. Beckner filed a bill of complaint against Friendly and FriendCo. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) The chancellor entered into judgment, ruling in Ms. Beckner’s favor on Count II of her Bill of Complaint-grossly inadequate consideration. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) The court reversed the trial court’s decree rescinding the amendment to the lease and requiring repayment of funds by Mrs. Beckner. Friendly Ice Cream Corp. v. Beckner, 597 S.E. 2d 34 (Va. 2004) Galloway v. Galloway, 622 S.E. 2d 267 (Va. Ct. App. 2005) Diana Ruth Galloway, former spouse, appeared before the court seeking review of the Mathews County Circuit Court’s ruling reversing the trial court’s ruling that the property settlement agreement between wife and former husband was unconscionable under Va. Code Ann.  §20-151. Galloway v. Galloway, 622 S.E. 2d 267 (Va. Ct. App. 2005) Wife failed to prove any  overreaching by the husband, even if she had been able to prove a gross disparity in the division of assets. Galloway v. Galloway, 622 S.E. 2d 267 (Va. Ct. App. 2005) Also there was no clear and convincing evidence of overreaching or oppressive behavior by the husband. Galloway v. Galloway, 622 S.E. 2d 267 (Va. Ct. App. 2005) The parties were married on June 1, 1984, and separated on October 1, 2001. Galloway v. Galloway, 622 S.E. 2d 267 (Va. Ct. App. 2005) They had neither born nor adopted children into this marriage. Galloway v. Galloway, 622 S.E. 2d 267 (Va. Ct. App. 2005) After their separation in 2001, husband brought the property settlement agreement to wife’s apartment where the wife read it and proposed no changes. Galloway v. Galloway, 622 S.E. 2d 267 (Va. Ct. App. 2005) The agreement was executed on September 29, 2001. Galloway v. Galloway, 622 S.E. 2d 267 (Va. Ct. App. 2005) The commissioner found the agreement to be unconscionable, because there was a â€Å"gross disparity† that existed between the value of the property each party would receive. Galloway v. Galloway, 622 S.E. 2d 267 (Va. Ct. App. 2005) The trial court sustained husband’s objection to the commissioner’s finding of unconscionability. Galloway v. Galloway, 622 S.E. 2d 267 (Va. Ct. App. 2005) This case relates to Jones v. Star Credit Corp in the similarity of monetary value. The freezer was worth a lot less than was priced; the Jones were unaware of the actual value of the unit. Similarly, in thi s case, the value of the property was not made known to the wife. Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) Appellant wife, Rabha Chaplain, â€Å"challenged the order of the Circuit Court of the city of Virginia Beach (Virginia), which granted appellee husband’s motion to strike the wife’s evidence and found that the parties’ premarital agreement was not unconscionable on its face and was enforceable.† Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) The wife had no source of income and was also foreign, having limited knowledge of English, therefore not allowing her to read or understand the agreement. Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) She claimed that her husband had also failed to sit down and explain the terms of the agreement to her before it was executed. Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) The wife’s native language was Arabic, having lived in Morocco until the summer of 1996. Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) Six months after  coming to the United States to visit her brother, she met her husband. Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) They were married on September 4, 1997. Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) She spoke limited English and relied on a translator. Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) Husband testified that she could read the English menu in a Chinese restaurant. Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) Within two months of meeting, parties became engaged. Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) The wife signed a premarital agreement â€Å"because she trusted her husband.† Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) She had no knowledge of what the agreement held, or that it was a premarital agreement. Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) She thought it was just â€Å"a paper for marriage†¦like [a] license or something.† Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) This case also relates to Jones v. Star Credit Corp because the husband failed to disclose a [his] net worth to his wife prior to the execution of the agreement. He declared to his wife that he was a â€Å"poor man† and â€Å"didn’t have the money much.† Chaplain v. Chaplain, 682 S.E. 2d 108 (Va. App. 2009) Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) Jessee, Plaintiff, sued store owner, Smith, seeking $2673.26 for labor pursuant to an oral contract for interior finishing work. Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) The parties are disputing the method of determining the labor charge, there being evidence that the plaintiff’s oral contract aligned with the trade custom. Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) The trial court held that there had been no meeting of the minds concerning the labor price and the price demanded by plaintiff was â€Å"exorbitant† and contrary to public policy. Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) The Defendant, Jesse, a carpenter, testified that he was asked by Smith and by Brenda Garrett, manager of Smith’s store in Norton, if he would finish the work on the interior of the store for a price of â€Å"cost plus ten percent.† Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) He declined and presented a† cost plus twenty-five percent†, explaining he would have to pay for the materials. Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) Garrett called Smith at home and told him to â€Å"go ahead and start on Monday.† Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) Smith refused to pay when Jessee presented  Smith with a labor bill of $2,673.26, representing 125% of the cost of the materials. Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) Smith contended there had been a misunderstanding concerning the labor charge. Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) The trial court moved to strike down the evidence of the oral contract. Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) It also ruled the contract unenforceable on the ground of public policy. Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) The judge had reasoned the labor charge was â€Å"exorbitant.† Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) The courts reversed the trial court’s judgment, which dismissed the carpenter’s action against the store owner to recover under an oral contract, because they failed to submit the contract question to the jury. Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) The case was remanded for a new trial, if the parties were advised to do so. Jessee v. Smith 278 S.E. 2d 793 (Va. 1981) This case is similar to Jones v. Star Credit Corp. because monetary value was an issue of controversy. The monetary value of this job was not made clear or explained properly to the Plaintiff beforehand. Conclusion Because the salesman was dishonest in his dealing with Jones, and did not reveal the actual price value of the home freezer unit, the courts will find the contract unconscionable based on previous rulings of similar cases. Jones v. Star Credit Corp., 298 N.Y.S.2d 1 (Sup. Ct. 1969) The Virginia court will apply the same standard as set forth in Jones, and will not apply any other standard. In each of these cases, people were misled into or coerced into signing a contract, when they were unsure of the terms and conditions, and were without counsel, causing the defendant to feel as if they had the upper right hand in the matter. In each case the plaintiff was left unknowing the actual monetary value of the issue, the defendant failed to reveal it. A contract is considered unconscionable when the defendant does not take the proper steps to ensure that the plaintiff is made fully aware and understands what is involved in the contract, and also the exact monetary value in the contract. So in answer to the presented question, yes, the Virginia courts are highly likely to follow the unconscionability doctrine that has been set out and applied in the Jones v. Star Credit Corp. case.

German V-2 Rocket in World War II

In the early 1930s, the German military began to seek out new weapons that would not violate the terms of the  Treaty of Versailles. Assigned to aid in this cause, Captain Walter Dornberger, an artilleryman by trade, was ordered to investigate the feasibility of rockets. Contacting the  Verein fà ¼r Raumschiffahrt  (German Rocket Society), he soon came in contact with a young engineer named Wernher von Braun. Impressed with his work, Dornberger recruited von Braun to aid in developing liquid-fueled rockets for the military in August 1932. The eventual result would be the worlds first  guided ballistic missile, the V-2 rocket. Originally known as the A4, the V-2 featured a range of 200 miles and a maximum speed of 3,545 mph. Its 2,200 pounds of explosives and liquid propellant rocket engine allowed Hitlers army to employ it with deadly accuracy. Design and Development Commencing work with a team of 80 engineers at Kummersdorf, von Braun created the small A2 rocket in late 1934. While somewhat successful, the A2 relied on a primitive cooling system for its engine. Pressing on, von Brauns team moved to a  larger facility at Peenemunde on the Baltic coast, the same facility that developed the V-1 flying bomb, and launched the first A3 three years later. Intended to be a smaller prototype of the A4 war rocket, the A3s engine nonetheless lacked endurance, and problems quickly emerged with its control systems and aerodynamics. Accepting that the A3 was a failure, the A4 was postponed while the problems were dealt with using the smaller A5. The first major issue to be addressed was constructing an engine powerful enough to lift the A4. This became a seven-year development process that led to the invention of new fuel nozzles, a pre-chamber system for mixing oxidizer and propellant, a shorter combustion chamber, and a shorter exhaust nozzle. Next, designers were forced to create a guidance system for the rocket that would allow it to reach the proper velocity before shutting off the engines. The result of this research was the creation of an early inertial guidance system, which would allow the A4 to hit a city-sized target at a range of 200 miles. As the A4 would be traveling at supersonic speeds, the team was forced to conduct repeated tests of possible shapes. While supersonic wind tunnels were built at Peenemunde, they were not completed in time to test the A4 before being put into service, and many of the aerodynamic tests were conducted on a trial and error basis with conclusions based on informed guesswork. A final issue was developing a radio transmission system that could relay information about the rockets performance to controllers on the ground. Attacking the problem, the scientists at Peenemunde created one of the first telemetry systems to transmit data. Production and a New Name In the early days of  World War II, Hitler was not particularly enthusiastic about the rocket program, believing that the weapon was simply a more expensive artillery shell with a longer range. Eventually, Hitler did warm to the program, and on December 22, 1942, authorized the A4 to be produced as a weapon. Though production was approved, thousands of changes were made to the final design before the first missiles were completed in early 1944. Initially, production of the A4, now re-designated the V-2, was slated for Peenemunde, Friedrichshafen, and Wiener Neustadt, as well as several smaller sites. This was changed in late 1943 after Allied bombing raids against Peenemunde and other V-2 sites erroneously led the Germans to believe their production plans had been compromised. As a result, production shifted to underground facilities at Nordhausen (Mittelwerk) and Ebensee. The only plant to be fully operational by wars end, the Nordhausen factory utilized slave labor from the nearby Mittelbau-Dora concentration camps. It is believed that around 20,000 prisoners died while working at the Nordhausen plant, a number that far exceeded the number of casualties inflicted by the weapon in combat. During the war, over 5,700 V-2s were built at various facilities. Operational History Originally, plans called for the V-2 to be launched from massive blockhouses located at Éperlecques and La Coupole near the English Channel. This static approach was soon scrapped in favor of mobile launchers. Traveling in convoys of 30 trucks, the V-2 team would arrive at the staging area where the warhead was installed and then tow it to the launch site on a trailer known as a Meillerwagen. There, the missile was placed on the launch platform, where it was armed, fueled, and the gyros set. This set-up took approximately 90 minutes, and the launch team could clear an area in 30 minutes after launch. Thanks to this highly successful mobile system, up to 100 missiles a day could be launched by German V-2 forces. Also, due to their ability to stay on the move, V-2 convoys were rarely caught by Allied aircraft. The first V-2 attacks were launched against Paris and London on September 8, 1944. Over the next eight months, a total of 3,172 V-2 were launched at Allied cities, including London, Paris, Antwerp, Lille, Norwich, and Liege. Due to the missiles ballistic trajectory and extreme speed, which exceeded three times the speed of sound during descent, there was no existing and effective method for intercepting them. To combat the threat, several experiments using radio jamming (the British erroneously thought the rockets were radio-controlled) and anti-aircraft guns were conducted. These ultimately proved fruitless. V-2 attacks against English and French targets only decreased when Allied troops were able to push back Germans forces and place these cities out of range. The last V-2-related casualties in Britain occurred on March 27, 1945. Accurately placed V-2s could cause extensive damage and over 2,500 were killed and nearly 6,000 wounded by the missile. Despite these casualties, the rockets lack of a proximity fuse reduced losses as it frequently buried itself in the target area before detonating, which limited the effectiveness of the blast. Unrealized plans for the weapon included the development of a submarine-based variant as well as the construction of the rocket by the Japanese. Postwar Highly interested in the weapon, both American and Soviet forces scrambled to capture existing V-2 rockets and parts at the end of the war. In the conflicts final days, 126 scientists who had worked on the rocket, including von Braun and Dornberger, surrendered to American troops and assisted in further testing the missile before coming to the United States. While American V-2s were tested at the White Sands Missile Range in New Mexico, Soviet V-2s were taken to Kapustin Yar, a  Russian rocket launch and development site two hours east of Volgograd. In 1947, an experiment called Operation Sandy was conducted by the US Navy, which saw the successful launch of a V-2 from the deck of the  USS Midway (CV-41). Working to develop more advanced rockets, von Brauns team at White Sands used variants of the V-2 up until 1952. The worlds first successful large, liquid-fueled rocket, the V-2 broke new ground and was the basis for the rockets later used in the American and Soviet space progra ms.