In the first situation, we can identify three main issues. First of all, the order arrived a few days late. Then the Buyer asserts that the MP3 Players were damaged by moisture by the ship's hull. These two problems are linked to each other: the Buyers wants us to cut the sell price from 50/unit to 30/unit because of the delay and the damages. To finish with, he asks our company for compensation in order to pay a customer who bought a MP3 and who had a car crash. In fact, according to him, our MP3 players interfered with the car's GPS navigation system which lead to the accident. Now that we have exposed the three main problems, let's identify, according to the business law, what our rights are in this situation. In the second situation, one of our oldest employees, Anna, in the sales department has made an oral agreement with one of our customers, Small Co. She embarked on a project: acquiring the Small Co. stocks in six months. Our company management did not have any information about this agreement and refuses to pay the small company. At the same time, we are thinking about hiring a younger woman, Betty, to replace Anna. However, we are facing a dilemma because Anna is old, she has ten years service so she knows a lot about our company and Betty wants to work from her home. In the last situation, our company has decided to create a new entity that will sell our MP3 players in the US. However, the company wants to minimize the tax it will pay in the new entity's profits. At the same time, we have decided to deal with a new manufacturer in China, China Co., but we thing that this latter could try to duplicate our products. In fact, in the agreement that the Chinese company sent us, there is no clause concerning dispute resolution. Thats why we have decided to hire a lawer in order to solve this problem on the legal scale.
[...] However, the company wants to minimize the tax it will pay on the new entity's profits. At the same time, we have decided to deal with a new manufacturer in China “ChinaCo” but you thing that this latter could try to duplicate our products. In fact, in the agreement that the Chinese company sent us, there is no clause concerning dispute resolution. That's why; we have decided to hire a lawer in order to solve this problem on the legal scale. [...]
[...] Our company management hadn't any information about this agreement and refuses to pay the small company. At the same time, you are thinking about hiring a youngest woman, Betty, to replace Anna. However, we are facing a dilemma because Anna is old, she has ten's year services so she knows a lot about our company and Betty wants to work from her home. (Anna's Agreement The Oral Agreement that Anna did is not a good solution for our company. In fact, we have to reimburse the company for the products that “SmallCo” hasn't sold. [...]
[...] (1974) arbitration clause is to be respected and enforced by federal courts in accord with the explicit provisions of the United States Arbitration Act that an arbitration agreement, such as is here involved, 'shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.' 9 U.S.C. ss Wilko v. Swan, supra, distinguished. Pp. 2452--2458. In the context of an international contract, the advantages that a security buyer might possess in having a wide choice of American courts and venue in which to litigate his claims of violations of the securities laws, become chimerical, since an opposing party may by speedy resort to a foreign court block or hinder access to the American court of the buyer's choice. Pp. [...]
[...] In fact, if we are used to deal with this Buyer and that he is used to order big amounts, we have to find a solution in order to satisfy him and to keep him loyal towards our company. In our case, we don't know what is mentioned in the contract and above all, if there is a written contract. Moreover, it is very difficult to take a decision because we don't know how long the delay is. In fact, as we have explained before, according to the delay, the result will be different. [...]
[...] Anyway, the Buyer wants a compensation of per unit. You can accept this offer, negotiate it or even refuse it if there isn't any clause in the contract. In fact, in this case, the Buyer can't oblige us to accept this amount. (The Damages When the Buyers received its order, he noticed that the players were damaged by moisture from the ship's hull which would justified the delay in delivery) a discount per each player. For the delivery, we signed a contract with the transportation Miami”. [...]
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