Economy and Business Terms - Charlie, your teacher of English
unlimited warranty, which has no constraints, or an extended warranty, which has a longer expiry, in
addition to the ordinary warranty.
Windfall: It is a sudden, unexpected profit or gain. A windfall may occur, for example, after a
company announces an earnings surprise and its stock consequently jumps significantly.
Companies may also experience windfall when demand for their products skyrockets; for example,
an umbrella manufacturer may see windfall during an especially rainy year.
Windfall Profits Tax: A tax on profits seen as excessive. For example, a windfall profits tax may be
imposed on oil companies when their profits rise above a certain amount. The idea behind a windfall
profits tax is to encourage the taxed persons or companies to lower their prices, which is thought to
be good for consumers. However, it may have the effect of reducing investment because the after
tax profit may not be worth the effort.
Without Prejudice: Law phrase: Without abandonment of a claim, privilege, or right, and without
implying an admission of liability.
In the first case, When used in a document or letter, without prejudice means that what follows (a)
cannot be used as evidence in a court case, (b) cannot be taken as the signatory's last word on the
subject matter, and (c) cannot be used as a precedent. Contents of such documents normally
cannot be disclosed to the courts but, when a party proposes to settle a dispute out-of-court, it is the
genuineness of the effort that determines whether the proposal can disclosed or not, and not
whether the words without prejudice were used.
(2) When a court case is dismissed, or a court order is issued without prejudice, it means that a new
case may be brought or a new order issued on the same basis as the dismissed case or the original
order.
Windfall Shares: They are shares given without charge to the owners of a mutually-owned
company when that company is in the process of demutualizing. Because the owners will no longer
be the owners when the company demutualizes, windfall shares are designed to compensate them
for their previous ownership. This is intended to encourage goodwill. It also gives the former owners
a continued stake in the company.

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