homework for accounting theory

1 | P a g e

The Erica oil disaster which had taken place in France is considered to be the most disastrous
oil spill for the Environment. The French Oil Company was compelled to legitimacy
compromise. It was the French Oil Company which was involved with exploration of the oil
from the sea beds. But due to some unavoidable circumstances the oil spill disaster had taken
place which did have an adverse effect on the environment. For this particular reason, the
company was being compelled by the court of law of the country to compromise and also to
ear the consequences of the difficulty as being faced by the people su
ounding the sea
(those who were being affected by it).
On the 12
th
of December 1999, this major event had taken place because of which the
company had to face and bear various consequences which ultimately had an adverse effect
on the shareholders of the company. Because of the storm in the Bay of Biscay, the Erica
pillars and on the support in which it was executing its exploration work had
oken.
Therefore, all the oil which was already extracted by the company and was kept as the stock
was spilled which had created an adverse effect on the environment. Oil spill is considered as
one of the major events which had affected the environment severely. About 30000 gallons of
the oil was spilled in the sea which was the major reason for the destruction of the water
ecosystem. The areas which were affected by the same were a tourist attraction place which
was a place of panic when the incident had taken place. Ten of the thousands of the seabirds
had perished and many of the beached had become restricted as the tourist attraction. Not
only this, the local economy was also dislocated as it was affecting them as well.
A lengthy court procedure was conducted in order to determine that what will be the
consequences which are to be borne by the French Oil Company. It became difficult for the
court to decide as to what amount of money will be compensated by the company to the
people who had been suffering because of the major oil spill. But at the end of the court case,
the company had to pay a certain sum of $485,000 to all the plaintiffs and also to all the
2 | P a g e

villages which were affected by this major oil spill. One thing is to be observed in this regard
is the fact that, it was a natural disaster yet the company was being considered to pay for all
the losses to the people who are facing this particular affects of the oil spill. “A lengthy legal
attle had followed the sinking of the Erika culminating in 2010, when a Paris based appeals
court ordered Total to pay a fine of €375,000 (about $485,000) and awarded compensation
totalling €200 million (almost...