Case Study B For MC Electric, the legal question involved would be: is the agreement (contract) that Dortmund made with GB Circuits Co binding and enforceable? And did Dortmund, as an agent, have the apparent and/or actual authority to make a binding agreement with GB on behalf of MC Electric? Thus, a determination needs to be made as to whether MC Electric is required to pay GB the 50% commission on the deal. When determining whether or not the agreement is enforceable, the area of law involved would contract law and more specifically, the laws of agency because Dortmund appeared to act as an agent for MC Electric. There are two rules/principles of law that apply to agents like Dortmund and his actions. The first legal principle has to do …show more content…
Dortmund 's employment contract stated that, as the director of sales, he was responsible for managing employees and promoting sales, but pricing decisions and overall sales strategy were left to the president. This suggests that Dortmund may not have had the actual authority to make an agreement with GB. The point of debate here would be whether or not “promoting sales” is too broad of a term to diminish actual authority. Since “promoting” is defined as furthering progress, supporting, or actively encouraging something, it could be argued that Dortmund acted within his actual authority, and making a deal with GB could have been seen as a way of furthering progress for MC Electric. However, MC Electric could argue that by promoting sales, Dortmund 's responsibility was to try to encourage sales, but not to actually make deals. Since pricing decisions and overall sales strategy (sales plan of action) were the responsibility of the president, it could be argued that Dortmund did not have the authority to make the agreement with GB. Plans of action and agreements, like that with GB, would fall within the realm of an overall sales strategy, a responsibility of the president. Thus, it seems more likely that Dortmund did not have the actual authority to make an agreement with GB especially without communicating to or getting the approval of the …show more content…
Facts that suggest Dortmund had apparent authority are Dortmund 's role as “director of sales” and “sales promotion.” Both titles could give the impression to GB that Dortmund had authority. Additionally, GB could argue that making agreements like these fall within the usual authority of someone in Dortmund 's position by using examples in similar organizations, but more information would be needed to determine whether or not this is the norm. Finally, it should be noted that “a principal will be bound by contracts within the agent 's apparent authority only if the third party relied on that appearance of authority”(McInnes et al. 520). It seems likely that GB did rely on Dortmund 's appearance of authority, but there are still some arguments that MC Electric could present. First, it is not indicated that GB ever talked to the principal, and that their reliance on apparent authority would thus have been based only on Dortmund 's role within the company. By the way Dortmund talked, acted, or presented himself, he could have given GB a strong, but inaccurate representation that he had the authority. GB may also have relied on Dortmund being officially designated as the “director of sales”. This role may indicate apparent authority because he is in charge of “sales strategy”. Nonetheless, Dortmund 's role states that he is officially responsible
The contract was created to be lawful, not intentional to be illegal b. Knowingly and willfully acts, a required element of AKS, was not the basis of the initial of the contract c. Smith Kline did not solicit remuneration from the partners Cons that support that Hanlester should be viewed as
In the beginning of March the newly joint corporation, McKesson HBOC started a negotiating process with Oracle Corporation. Unfortunately for McKesson, the negotiations ended without a contract. On April 1 Bergonzi let Hawkins know that he found an offer that could be a good deal. The agreement would require McKessonHBOC to sell $20 million worth of software to Data General, along with a license and a right to return any inventory that was not sold during the period of 6 months. The corporation would also have to help Data General find customers for the product. In return, they could buy $25 millions worth of computer hardware. The contract was signed on April 5 the same year. The senior management thought that backdating the sales and purchases would raise the company's revenues up to the desired levels. In order to cover their actions, the company created a false delivery receipt that showed the date of the delivery as March 31, 1999, while in reality the product was delivered in April. Both, the information about the $25 Million purchase of hardware from Data General as well as the return agreement concealed from the public.
Ans. 6 The Court can overrule the decision for terminating Paul as he was not involved in the scheme. Due to his honesty he even admitted to be aware of the scheme. Moreover, no fraud was found in his facility and he should be held responsible for the warehouse for which he is in charge. Furthermore, higher management should be held responsible for not keeping an eye on the activities of supervisors at different locations.
According to text, a company who follows Weber’s theory will have a, “strict reliance on rules, division of labor, and a clearly established hierarchy in which power is centralized, (Miller, 25). This is clearly seen in the Carson’s location, prior to Fuller’s arrival. There is a separation of power with Carson’s old management and the employees. Employees were expected to complete tasks correctly, if not management would “step on their throats,” (ARTICLE). Management had all the power, and did not consult their employees when making decisions. These are all examples of Weber’s theory, as well as examples of why the Carson’s location needed a change in
Theresa Campana, CEO of the Buckeye Group, is a manufacturer’s agent for three companies that sells different types of software. As a sales agent for Accto Co., Saleco Inc., and Invo Inc., the Buckeye Group is responsible for calling business customers to sell accounting software, sales management software, as well as inventory management software out of Columbus, Ohio. With regards to logistics, according to the case, the Buckeye Group has sold $550,000 of total software, with Campana earning a 10 percent commission from Accto and Saleco, as well as a 7 percent commission from Invo per her dollar value of her final sales. Evidently, Campana’s initial ease of making sales come from her high knowledge of the products, background in business,
Mr. Hertford missed the intangible aspect of integrative negotiation and believed winning contract should be a successful outcome. In fact it was other way round in this situation. TexasAgs are one of the largest and best known petrochemicals company There was no urgency to seal a deal with cousins as cousin do not yet have any competitative deal. TexasAgs could have utilized some of their strengths of quality supply and worldwide reputation to avoid extra few concessions, which were not accordance to industry norm. Both parties didn’t view the issues from a broad
This case involves the law on fraud. Legally, fraud involves any act that induces a party to enter into a commercial transaction after relying on information that is not true. Fraud involves untrue statement that the maker has knowledge that it is untrue and misleading but goes ahead in highlighting it to the innocent party. For a party to succeed in its claim for the fraud it must prove to the court that the following elements have been satisfied (Evander). Firstly, the information made is false. Secondly, the defendant is aware that the statement is false. Thirdly, that information is intended to defraud the innocent party. Fourthly, the applicant relied on that information and as a result suffered consequential harm.
Most of the common activities in our daily life present an opportunity to negotiate, whether or not we realise it. Meta-reflecting upon my negotiation experiences during the class and other activities have led me to identify few common themes. In this assignment, the two themes I will be discussing are (1) the importance of being clear on the strategic intent and big picture thinking, and (2) the importance of managing the negotiation process through understanding the various phases and visualising negotiation as a train journey.
Furthermore, He considers the dominant of the marketing negotiations between an artist and its client th...
The bottom line for the negotiation would be programming Brookside’s forms. In this case, it would cost $1 million and take 9 months to complete. Brookside would pay 75% of the price, while Black Company would pay for the
As we learn from the case study, the Lincoln Electric Company is the largest global manufacturer of machines for welding, which are used in all kinds of construction projects. This means that the company has a large global presence and many employees, so its culture affects thousands of its workers. Even though it is now 2014, the company still has a large market share and very satisfied employees, so clearly the culture leaves employees satisfied and motivates them to work hard for the company.
ABC Electric has been in business since 1970. The company makes hand-held arc welders its primary customers are construction firms, shipbuilders, auto-repair shops, and “self-help” amateurs. The company has 30% of the current market share along with four other competitors it has an annual sales of $800 million.
Humanity is threatened by the overwhelming growth of science and technology. People are expanding their knowledge through observation and experiment, oblivious to the consequences that result from improper motive. Isaac Asimov—author of The Life and Times of Multivac—uses the science of numbers, or mathematics, as a solution to the fear that arises in a world controlled by a human-like machine. What human beings are afraid of is losing the very word that separates them from everything else in the world—human, and they will do whatever they can to keep that title to themselves.
The appointed regional directors, attempted to strong arm and change the culture of the EPA Seattle office evidenced by the abuse of authority, the blatant legal violations and the disregard for the seasoned employees that helped build the organization by threatening, demoting and firing competent
The management process, when properly executed, involves a wide variety of activities, including planning, organizing, directing and controlling. It is management’s role to perform all of these functions in order to maximize results. Management maintains the right to direct all business activities. In order to retain as much authority as possible in the direction of the workplace, management has sought to include certain provisions in collective bargaining agreements. Management has no rights over individual people within the organization, but does maintain rights to property, which are real and legally enforceable.