Takem’s Appliances and Electronics

LLCAuthor Ashraf Bani DomiFebruary 16, 2018ACCT 511 Advanced Business Law for AccountantsProfessor Dean Poirier license UniversityAbstr momentI would like to start my research authorship and tear out the juristicity and the validity of the withdraw that Takems Appliances and Electronics LLC. used to sell their electronics as he had this new idea of selling them door-to-door which was a re unloosen and that lead to halt advantage of this success by increasing his prices to 30% more(prenominal) if he delivers them to the customers house. Also, I pull up stakes explain the respectable consequences that the mental process Takem used in the region he lived in.Also, explaining the meaning of br fragmentisely of the obligation and what constitutes the lowest requirements in search of remedies in these kinds of mint. And for the gross revenue to be permissible, they essential encounter every sector of the jural criteria. Also, Takem must deport ethical accountability that takes place under the social responsibility to the small liaison he lives in.The legal case of snap handcart vs. Takems Appliances and Electronics, LLC will be analyzed and investigated regarding weather if the polish of this case is it legal, is it moral/ethical? IntroductionThe domain of commerce and most commercial enterprise relationships are initiated on a pack. spirit of compact legality is crucial for all vocationpeople, possessors, and managers. Since most commercial arrangements are constructed on contractual relationships.A decent preliminary point would be an empirical definition of a contract. Contracts include more than an arrangement or an agreement between two or more parties. A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in or so elan recognizes as a duty (Restatement (Second) of contract chapter 1 meaning of the term).The contract s to a faultl be simply described a s a wilful exchange of promises, creating obligations that, if defaulted on or failed to pay, throne be applyd and remedied by the judiciarys.It is imperative that we understand as when agreeing to terms of a contract, entities are created and delimitate their particular rules and obligations. This differs from another(prenominal) firmaments of the law, such as torts, whither rules and obligations are imposed on them.Furthermore, a valid contract can create a home in which parties to the contract can predict, with some surety, their upcoming relationship because each party knows that the coquets will hold them to their agreement.Despite the detail courts will enforce a valid contract after it has been created, what the parties agree to in the start place in comm only when unrestricted. Mr. Takems Business Model is it ratified?When we pick out contract law, the focus is usually on the problems that can arise. It may hence appear that most contractual relationship expe riences complications. In fact, most contracts are privileged or resolved to the mutual satisfaction of the parties, and the courts become fat in a slight amount of contractual agreements, when an unfeasible gainsay arises.Hence, addressing our case study in this project we deprivation to outline some basic terminology that we discussed above and trying to apply it to our node, named Takems Appliances and Electronics, LLC. Takems Appliances and Electronics, LLC owned and operated by Tommy Takem. Tommy Takem owns Takems Appliances and Electronics, LLC that participates in what skill give the impression to some to be a very profitable business.However, we need to read by means of and through the touch circumstances and the case scenario to see and evoke our client what are the best business approach pattern he could proceed with his business, and whether we agree with his business practices or non, our constrain her in this case is to provide a legal guiding in this section and then will see how to evaluate, and explain to him the legal consequences as well as his potential drops, nevertheless from the first glance and the studying we can see that most of our client Mr. Takem and his business activities obeying to law, but facilitate need to be examined, and also we to talk active some moral philosophy practice that could prime unanticipated results. Which is something we will cover in more causality point later, in our case study.Takems business (Takems Appliances and Electronics, LLC) is located in a farming(prenominal) area of southwestern United States Virginia, and the majority of its customers are poorer residents of the Appalachian regions of Virginia, Tennessee, Kentucky, and West Virginia. consort to our case, Sally Walker vs. Takems Appliances and Electronics, LLC, our client, Tommy Takem. interested in concentrate his business close to these rural areas because due to different reasons, there isnt much competition for his busines s which was an opportunity for his business. barely the disadvantage was, most of the people who lived in these areas were comparatively uneducated enough to understand, poor credit, unsophisticated, and other reasons. Moreover, there was a conduct for appliances and electronics. And because there werent m whatever appliances stores around those areas, people needed to buy them. Tommy took advantage of that and augmentd his prices between 10-20%. This process adapted by our client is rig the precise meaning of the contractual law.Tommys business has been doing so well after the increase in the prices. Tommy newly came up with an idea for expanding his business. He immovable to begin selling his appliances and electronics door-to-door in the above-described regions. Until recently, it had been working great. He engage some great salespeople who really know how to apply the pressure and turn up the heat. Further, since he is providing a service to these societies by transporting the goods to their homes, he charges about 30% more than he would if the customers came to the store. Apparently, the salespeople do not mention this fact to the customers.Lately, Tommy received a letter from a disgruntled customer named Sally Walker (an elderly widow lady who lives al whiz in the hills of Southwest Virginiaher children and grandchildren have all moved out of the area.) She has fallen behind on her payments on her new laptop computer, and Tommy had started show efforts. He had not moreover referred it to a lawyer.The letter is very well written (which would be unexpected since Sally is not very well educated.) It indicates that her granddaughter, who recently graduated with an MS in Accounting from Liberty University Online helped her with it. It argues that the entire deal is conscienceless and therefore unenforceable.Moreover, the letter emphasizes that Sally has paid enough for the computer that she purchased and will not pay any more.Finally, the letter indica tes that if Tommy pushes the matter more, Sally threatens to sue for vindicatory damages and write letters to the editors of various local papers throughout the region to ruin his reputation. As we can see from the above surrounding circumstances and from the definition of the contract, our client has been operating with the compliance in amity with the law and legality in most of his business transaction, as worldwide roles, The foundations of Corporate Governance demand that organizational practice follows the legal requirements.In current eons, news reviews of industry wrongdoings have forged uncertainty on the bottom line that submission is definitely the widespread procedure. (Realistic Hypothetical Legal Scenarios Business Law for Accountants, 2013) despite the allegation letter from Ms. Walker, and despite the ethical conduct regarding the transparentness in the new adapted policy and increase of 30% on the delivered items in this section, but there is however still an e xception to the legality of the later mentioned of the 30% this should be communicated to the other partiers of the contract.Whether the crease in the Letter has any Merit?In response to a letter recently received which was written by Sally Walkers granddaughter of one of his customer, from lawyer standpoint of view, the indication of Sallys letter concerning and arguing the unconscionable act of our client (Takems Appliances and Electronics, LLC) by excessively charging their customers. In analyzing the precedent there could thee potential legal obligations first one, if Ms. Walker is serious enough about saving this case to the court, the court may witness upon the contract from the unconscionability part of it, charm court applies this point very scarcely, but still feasible defensive structure to the plaintiff side due to Ms. Walker conditions.The second one is that Ms. Walker could recall for the retaliatory damage claim, as explained below.The third one is regarding the unrevealed charges for the delivery services.Typically, court will enforce a valid contract after it has been formed, In deciding the validity of consideration, courts will not look to the amount or type of considerations or the relative bargaining power of the parties (except in the rare case of a contract so burdensome on one party as to indicate unconscionability) (ABLA, 2017).My concern here is to provide my client with a commonsensical and accurate sound legal standpoint and preventing him from a that and a future legal consequence. On the other hand, when Ms. Walkers proclaimed that the installment and the amount she has paid for the computer so far, is enough, I see this all was agreed upon beforehand forming the agreement with her.Obviously, I would advise that each one of us should read and go through any kind of contract in a way that can clear and remove any ambiguous completely, read through your paper one two or whatsoever, moreover, always seek for an expertise adv ise in most of your relationship areas, and save yourself of being an unexpected position.Should he Take the Threats Seriously?As react with caution in think out whether my client should take Ms. Walkers letter in a serious manner because we are afraid that the court might rule to her advantage. When it is claimed or appears to the court that the contract or any clause thereof may be unconscionable the parties shall be afforded a reasonable opportunity to present exhibit as to its commercial setting, purpose and effect to aid the court in making the determination. (106).The Restatement also has a similar rule which tracks the UCC provision. (107) The purpose of the unconscionability precept is to expressly allow courts to police contracts for terms they deem unconscionable. (108) Though unconscionable is not defined by the UCC, some definitions give a receive for what the originators of the doctrine may have intended. One court has defined it as that which affronts the sense o f decency. (109)One dictionary definition is lying outside the limits of what is reasonable or acceptable shockingly unsporting, harsh, or unjust. (110) (Bar-Gill, O., Ben-Shahar, O., Marotta-Wurgler, F. 2017).Another countersignature from the law that needs to be added here is that the procedure in which my client (Takems Appliances and Electronics, LLC) following by charges 30% more to delivering the appliances and electronics to the customers door-to-door and the fact that his salespeople intended or might have been instructed by Mr. Takem not to mention it to the customers.Despite the fact that my client, Mr. Takem, by choice instructed them to mention the 30% increase or not, while he is the owner of the business and all of his employees should follow his instructions. The court might obtain this conclusion from his business conduct and count this against him as a form of misleading, uncommunicated as one of the criteria to validate a contract, misrepresentation, misrepres entation fraudulent or other entrance to breach this contract or similar contract since the court will incline for the advantage of the plaintiff (Ms. Walker) party of this contract against my client (Mr. Takem).As we go more through Ms. Walkers letter while she emphasizes that she is red to sue for punitive damages, whereas, punitive damages cannot normally be given in contract disputes, here I wouldnt worry about this vocalize either my client (Mr. Takem), as this is merely a threaten word in Ms. Walkers letter.However, this part in some case could be unpredictable, and because they are usually compensated in addition of the plaintiffs demonstrable injuries, and are awarded only in distinct cases, but to act as a prudential defends of my client (Mr. Takem) we need to supply him with the sound of law regarding this point, as a part of a lawyer due diligence where Jurors award punitive damages too often.The amounts they award are erratic and unpredictable, even though they start from shared moral intuitions about the reprehensibility of defendants conduct. And when they deliberate and decide as juries, both the size and variability of the awards increase. Feigenson, N. R. 2003).Its ambiguities which need to be corrected proximately before any serious consequences superficial. Furthermore, the major ambiguity in the business operated in this case is the wish of transparency in its transactions with their customers this absence of transparency is most deceptive in the prices and the percentages of charge that they put on their products and their services. This lack of transparency, when visible, could cause serious issues to any business, and, an educated customer could very tardily take them to court for misconduct and misleading if they dont change their method and honestly advise their customers of their business perfect.Should he Proceed with the Collection?To give my legal advice, I would recommend that my client (Takems Appliances and Electronics, L LC) not to proceed with any further steps in collecting the remaining payments from Ms. Walker. However, this might result in having other customers doing the same as Ms. Walker. Which is refusing to pay and threatening Mr. Takem again by suing his business and sending letters to media to ruin his business reputation.We would advise that Mr. Takem take longer period of era than usual before making any efforts for future collection in general, I would propose that Mr. Takem take an sign step by offering a payment discount for certain customers with some certain conditions with that he can plan ahead of time for his future project of establishing his own backing company, in main time this will participate in reshape his reputation in the area and encourage his customers to pay one time.Keeping the aforementioned trends, Takem needs to go beyond the literal meaning of the law and let go of unfair and /or fraudulent corporate conduct this includes false advertising and/or ambiguous s ales deals (Realistic Hypothetical Legal Scenarios Business Law for Accountants, 2013)Would Mr. Takem instal up a Financing Company? And what Should he do to value himself?I would strongly recommend that Mr. Takem should go ahead in adopting this step, in order to prevent and protect his business from any future consequences. But the best would be if he can collaborate with an outside financing company to take over this portion of his business, in a separate entity form, to avoid and mitigate future obligations and losing his customers.Alternatively, seeking for an external collection business office to handle in arrears or uncollected payments. Seeking a collection agency-or evaluating the one you have-can improve bottom-line results while maintaining your professional image. Overall, be sure to find a company that delivers results and matches the image you want to project. Use this list as a guide of what to expect (Anonymous, 2015). With this step-in mind Mr. Takem should put more consideration to the law that regulates and the requirement to establish this kind of business from the participation of the comprehensive openness, full disclosure and the complete condition associated with any arrangement.Finally, he wants to Know What do you Think About his Business Model- Regardless of whether you cerebrate that it is Legal, is it Moral/Ethical?I believe the majority of us will agree in response to Mr. Takems morality, and the way he is conducting his business is unethical, harmonise to the given case events. Unethical behavior that is not illegal a great deal falls in a grey area between aright and wrong that makes it difficult to decide what to do when it is encountered. Furthermore, different people have different perspectives regarding what is ethical and what is unethical. Though, there is sometimes a difference between behaviors that are unethical and activities that are actually illegal.The definition of business ethics and the answer to the que stion of What is Business Ethics in Sales? is the principles, ethical motive and standards that guide the behavior in the world of business and in sales relationships too (Spro, 2013). Ethics in sales is receiving a lot of oversight over recent years even more so, as it is the correct way to conduct business in the long term and bring long-term sales results for the company and for the sales team.Moreover, Business ethics in sales can either come from the company itself, this means that the companies ethics guidelines are written into their policies and therefore can be reflected or reproduced through their sales team management and then the sales team too (Ivan, C. D. 2014).Therefore, Doubt regarding corporate commitment to ethical obligations has always existed, particularly when maximisation of profits might be at risk. However, despite such mistrust two views have singled hope. First, a view has persisted that corporations at least olfactory perception compelled to comply wi th the law. At times violations of law might occur. However, this was not design to be the pattern of behavior for corporations generally.Conscious violation of law was not the behavior expected. Second, a view has begun to be echoed that business corporations are progressively cognizant of ethical obligations beyond literal compliance with law, and increasingly look compelled to act accordingly (Di Lorenzo, V. J Bus Ethics, 2007).