Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 06 Apr 2018 My Price 4.00

Liability Buzz Coffee Shops

Reporting a Contingent Liability Buzz Coffee Shops is famous for its large servings of hot coffee. After a famous case involving McDonald’s, the lawyer for Buzz warned management (during 2007) that it could be sued if someone were to spill hot coffee and be burned. “With the temperature of your coffee, I can guarantee it’s just a matter of time before you’re sued for $1,000,000.” Unfortunately, in 2008, the prediction came true when a customer filed suit. The case went to trial in 2009, and the jury awarded the customer $400,000 in damages, which the company immediately appealed. The company’s lawyers believed the lawsuit would be overturned on appeal. During 2010, the customer and the company settled their dispute for $150,000. What is the proper reporting of this liability each year?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 06 Apr 2018 05:04 PM My Price 4.00

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