4.2 FT BSkyB offer set to spark digital television price war: group to give away set-top boxes in battle for subscribers British Sky Broadcasting, the satellite broadcaster, armed itself for a fierce hattle for digital television subseribers yestenday when it said it would give away the 200 set-lup boses needed to receive the new services. BSkyB, which launched 140 digital channels last year, said it would give away the oquipment from next month to 'remove all possible burriers to digital take-up". also intends to stop broadcasting using analogue technology by 2002. The move looka set to spark a price war in the industry. On Digital, BSkyB's rival, which launched 30 digital terestrial channels via roof-top aerials last year, confirmed it planned to give away its own set-top bones for a month. Analysts said yesterday On Digital would have to extend that offer to match BSkyB's. A feeling that BSkyB would win the battle for digital subseribers sent its shares soaring 65.5p to 607p. Meanwhile, shares in Carton Communications and Granada Group, the two ITV companies that own On Digital, closed down 48.Sp at 544 Sp and down 24p at E13.43 respectively. BSkyB also announced it would offer free internet acess via personal computers from 1 June and a 40 per cent discount on British Telecommunications telephone calls. In addition, it revealed it had signed up 551,000 digital customers by 3 May. Mark Booth, BSkyB's chief executive, said the announcements were aimed at competing more effectively with the cable industry, which has yet to launch a digital service. Cable customers have discounted phone calls and will not have to pay an upfront charge for digital boxes. Mr Booth brushed off suggestions that BSkylB was feeling threatened by competition from On Digital. "On Digital will be a successful niche player but it will always be in a niche", he said. Stephen Grabiner, chief executive of On Digital, welcomed RSkyl's plans. He said BSkyB's decision to cease analogue transmissions would enable the government to feel more comfon- able about switching off the terrestrial analogue signal. He hinted that On Digital would match BSkyB's offer. BSkyB said the cost of acquiring cach new subscriber would be E155. It is suspending dividend payments in favour of investing in digital. BSkyB is setting aside 31Sm to pay for the free transfer of its analogue subscribers to digital. However, Martin Stewart, chief financial officer, said switching off analogue transmissions would give BSkyB annual savings of ES0m. BskyB is increasing the monthly charge for many of its channels. Cable & Wireless Communications, the UK's biggest cable operator, said its 200-channel digital television service would be launched in Manchester and the north west on 1 July. It hoped to sign up about 200,000 customers during the first year and said it would always be able to charge less than BSkyB. But it warmed that launching the channels would hit pre-tax profits. Question : With reference to Case study 4.2, which theoretical model of oligopoly best explains the behaviour of the leading firms in the UK's market for digital television services?

Discussion Board Question 0 The Uniform Commercial Code (UCC) Article 1 Part 2, Section 2- 204 describes contract "Formation in General." How can an "agreement sufficient to constitute a contract for sale" be found when "the moment of its making is undetermined?" Please look at UCC definitions and relevant provisions to support your answer. Your answer should be between 125 words and 300 words.$ 2-204. Formation in General. (1) A contract for sale of goods may be made in any manner suf- ficient to show agreement, including conduct by both parties which recognizes the existence of such a contract. (2) An agreement sufficient to constitute a contract for sale may be found even though the moment of its making is undetermined. (3) Even though one or more terms are left open a contract for sale does not fail for indefiniteness if the parties have intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy.CHAPTER 1 Law and Legal Reasoning 5 UNIFORM LAWS During the 1800s, the differences orders, and decisions of administrative agencies. An among state laws frequently created difficulties for administrative agency is a federal, state, or local businesspersons conducting trade and commerce government agency established to perform a specific among the states. To counter these problems, a group function. Administrative law and procedures consti- of legal scholars and lawyers formed the National tute a dominant element in the regulatory environ- Conference of Commissioners on Uniform State Laws ment of business. (NCCUSL, www.uniformlaws.org) in 1892 to draft Rules issued by various administrative agencies uniform laws (model statutes) for the states to con- now affect almost every aspect of a business's opera- sider adopting. The NCCUSL still exists today and tions. Regulations govern a business's capital struc- continues to issue uniform laws. ture and financing, its hiring and firing procedures, Each state has the option of adopting or rejecting a its relations with employees and unions, and the way uniform law. Only if a state legislature adopts a uniform it manufactures and markets its products. Regulations law does that law become part of the statutory law of that enacted to protect the environment also often play a state. Note that a state legislature may adopt all or part significant role in business operations. of a uniform law as it is written, or the legislature may rewrite the law however the legislature wishes. Hence, FEDERAL AGENCIES At the national level, the cabinet even though many states may have adopted a uniform departments of the executive branch include numer- law, those states' laws may not be entirely "uniform." ous executive agencies. The U.S. Food and Drug The earliest uniform law, the Uniform Negotiable Administration, for example, is an agency within Instruments Law, was completed by 1896 and adopted the U.S. Department of Health and Human Services. in every state by the 1920s (although not all states Executive agencies are subject to the authority of the used exactly the same wording). Over the following president, who has the power to appoint and remove decades, other acts were drawn up in a similar man- their officers. ner. In all, more than two hundred uniform acts have There are also major independent regulatory been issued by the NCCUSL since its inception. The agencies at the federal level, such as the Federal Trade most ambitious uniform act of all, however, was the Commission, the Securities and Exchange Commission, Uniform Commercial Code. and the Federal Communications Commission. The president's power is less pronounced in regard to inde- THE UNIFORM COMMERCIAL CODE One of the most pendent agencies, whose officers serve for fixed terms important uniform acts is the Uniform Commercial and cannot be removed without just cause. Code (UCC), which was created through the joint efforts of the NCCUSL and the American Law Institute.' The UCC was first issued in 1952 and STATE AND LOCAL AGENCIES There are administrative has been adopted in all fifty states,' the District of agencies at the state and local levels as well. Commonly, Columbia, and the Virgin Islands. a state agency (such as a state pollution-control agency) The UCC facilitates commerce among the states by is created as a parallel to a federal agency (such as the Environmental Protection Agency). Just as federal stat- providing a uniform, yet flexible, set of rules govern- ing commercial transactions. Because of its impor- utes take precedence over conflicting state statutes, tance in the area of commercial law, we cite the UCC federal agency regulations take precedence over con- flicting state regulations. frequently in this text. We also present the full UCC in Appendix C. From time to time, the NCCUSL revises the articles contained in the UCC and submits Case Law and the revised versions to the states for adoption. Common Law Doctrines The rules of law announced in court decisions consti- Administrative Law tute another basic source of American law. These rules Another important source of American law is include interpretations of constitutional provisions, administrative law, which consists of the rules, of statutes enacted by legislatures, and of regulations created by administrative agencies. i. This institute was formed in the 1920s and consists of practicing attorneys, legal scholars, and judges, Today, this body of judge-made law is referred to I. Louisiana has not adopted Articles 2 and 24 (covering contracts for as case law. Case law-the doctrines and principles the sale and lease of gooch], however. announced in cases-governs all areas not covered byThe Big 4 accounting rms dominate the audit and tax market in the USA. Of the charts listed below, which would you use to show which accounting firm dominates in each state of the USA in terms of audit revenues, and which would you not use? Area Chart Line Chart Column Chart Histogram Bubble Chart Stacked Column Chart Stacked Area Chart Pie Chart Waterfall Chart Symbol Chart