Purchasing and Supply Chain Management
6th Edition
ISBN: 9781305809789
Author: MONCZKA
Publisher: Cengage
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Question
Chapter 15, Problem 11DQ
Summary Introduction
To determine: Whether the purchaser possess legal right to sue the supplier over breach of contract and mention the conditions which are important.
Given scenario: A supplier quotes a price to a purchaser and makes a contract. Later, the supplier claims that he had mistakenly quoted wrong price.
Introduction: Agreements between two parties for exchange of goods or services is called as a contract. The contracts can be either in written or verbal forms.
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Suppose you are starting a new outdoor adventure business. You enter into an agreement with your best friend who sells camping tents wholesale for the purchase of 100 tents to be delivered to your retail storefront on Friday. Because you are best friends, you do not bother to negotiate any terms other than price and delivery date. Suppose that your best friend sends you the wrong tents instead, and 15 of them are damaged.
Must you accept the tents? What are the legal options for you? What are the parties’ rights and responsibilities regarding the sale? Who will bear the risk of the lost?
Suppose a supplier gives you a price on a contract and then later comes back and claims that he mistakenly wrote down the wrong price. Do you have the right to sue the supplier over breach of contract? What conditions are important here?
In addition, summarize the three methods of contract cancellations. Describe the remedies and preventative steps you could take in the scenario above.
What are the remedies available to an unpaid seller in case of buyer's default?
Chapter 15 Solutions
Purchasing and Supply Chain Management
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Similar questions
- What remedies are available to the buyer if the goods are defective or do not meet the contract requirements?arrow_forwardCan someone help me make a business letter of complaint. Thank you! Scenario: Imagine that you ordered the latest model of cell phone, made a payment of fifty percent of the price through a bank, and was promised by the seller that the product will be delivered to you, brand new. Unfortunately, the cell phone that was delivered to you was a used unit.arrow_forwardAre patents and proprietary technology safe with this supplier? Is the suppliertrustworthy? What legal system does the supplier expect to follow?arrow_forward
- When a broker is changing from a single agency relationship with a seller to a transaction broker, at what point in the transaction does this actually happen? At any time during a transaction, as long as the seller gives consent in writing. Only when the buyer consents in writing. At the closing. After the offer is signed.arrow_forwardHow do you know when a contract is formed? If there is conflicting language in the buyer’s purchase order and the seller’s confirmation, which language is binding?arrow_forwardIf a contract was found to be ambiguous, would you rather be the person who wrote the contract or the person who received the contract?arrow_forward
- Locate the doctrine in the UCC and describe “accommodation" in your own words. Be sure to provide a definition that is applicable in relation to the sale of goods and contracts. Now, apply the doctrine to the hypothetical below: You own Bo’s Garden Supplies and have used Mick’s Manure as a supplier for several years. Exchanging email, you and Mick agree that he will ship the usual 50 bags of manure around April 1st. On March 30th, he emails you to say that there was a shortage of full-size manure bags so 100 bags, totaling the same amount of manure, are on their way and will be there as of April. Is Mick in breach of contract? Why or why not? Please explain. What are your legal options?arrow_forwardWhat are the obligations of the vendor?arrow_forward1. You are organizing a May Madness dog show and must purchase ribbons for the first place, second place and third place winners plus participation ribbons for all entrants. You contracted a supplier who will provide this to you for a total price of $600, printed with the name "May Madness" and your logo in gold print. You have heard some rumors that the supplier might not be reliable and want to be sure you are legally protected if he does not perform. which statement is correct? A. There is no writing requirement of this contract because this is an order for specially manufactured goods. B. This contract would need to be in writing to be enforceable and the price must be mentioned in the written documentation of your agreement. C. No documentation is required since your supplier is a merchant and should be trustworthy and acting in good faith. D. You need a writing to document the oral agreement and it must include the quantity of goods for it to be an enforceable agreement.arrow_forward
- What are the key elements that should be included in a sales or lease contract to ensure both parties understand their obligations, rights, and responsibilities, and to minimize the risk of disputes or legal issues arising during the agreement?arrow_forwardIn business markets, close buyer-seller relationships Multiple Choice may improve the profits of both the buyer and the seller. are almost always desirable from the seller's point of view, but not from the buyer's point of view. may have benefits, but they usually increase a firm's uncertainty and risk. None of the answers is correct.arrow_forwardWould your advice differ in the following circumstances, and if so, why? (b) The offer from RW had stipulated the following statement: “Please send your acceptance by registered post sent before 4pm.” ZO sent a letter of acceptance before 4pm but by unregistered post which was never received by RW.arrow_forward
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