Discuss the pros and cons of gambling and state what the California Court of Appeals ruled regarding the treatment of gambling on credit
Almost all states permit some form of wagering. Supporters of gambling say that casinos create jobs and steady income, provide money for the state, and take business away from organized crime. Opponents argue that naive citizens inevitably lose money they can ill afford to forfeit, and that addicted gamblers destroy their families and weaken the fabric of communities. Many states do not allow gambling on credit. The California Court of Appeals in Metropolitan Creditors Service of Sacramento v. Sadri, states, "There is a special reason for treating gambling on credit differently from gambling itself. Having lost his or her cash, the pathological gambler will continue to play on credit, if extended, in an attempt to win back the losses. This is why enforcement of gambling debts has always been against public policy in California and should remain so, regardless of shifting public attitudes about gambling itself. If Californians want to play, so be it. But the law should not invite them to play themselves into debt. The judiciary cannot protect pathological gamblers from themselves, but we can refuse to participate in their financial ruin."
You might also like to view...
Which of the following statements is true about strict liability in tort?
A) Product liability actions based on strict liability in tort focus on the producer or manufacturer. B) To succeed in a strict liability action, the plaintiff must prove that the defendant did not exercise the degree of care that is reasonably expected under those circumstances. C) A failure by the manufacturer or seller to adequately warn of a risk or hazard associated with the product can be used by the plaintiff to establish that the product is defective. D) To be successful in a strict liability action, the plaintiff must prove that the product developed a defect before it was sold.
During 2015, Blevert Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 1% of sales in the year of sale, 3% in the year after sale, and 5% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows:
Sales Actual Warranty Expenditures 2015 $500,000 $6,000 2016 1,500,000 25,000 2017 2,000,000 105,000 $4,000,000 $136,000 What amount should Blevert report as a liability at December 31, 2017? A) $11,000 B) $20,000 C) $125,000 D) $224,000