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Two developments result in litigation between Legume and Arrow. First, due to an unanticipated sheep shortage, with substantially fewer sheep to shear, the price of wool skyrockets 1,000 percent. Second, due to an unexpected “cold snap,” consumer demand for wool sweaters increases dramatically, resulting in a 500% increase in Arrow’s wool sweater orders to Legume, compared to order averages over the previous ten years (the parties have a long-standing business relationship.)
Legume implores Arrow to increase its per-unit purchase price to $36.00, but Arrow refuses to modify the price term stipulated in the contract. When Arrow refuses to pay a higher price for the sweaters, Legume ceases delivery, claiming that it would be bankrupted by continuing to fill Arrow orders; further, Legume claims that based upon the longstanding business relationship between the parties, Arrow has at least an ethical obligation to pay a higher price.
Who wins? Does Arrow have an ethical obligation to pay a higher price, based upon such an unanticipated change in circumstances?
You are employed by a consumer products organization that has been rapidly growing for the past several years.
The average vacation allotted to employees in America is about two weeks but there is a mandatory five week vacation period for employees.
Another employee within your investment firm is perpetually unhappy with his job responsibilities, his position within the organization, and with the lack of "success" that he has achieved with your firm. What needs are not being fulfilled for this e..
Firm managers have many opportunities to take actions that benefit themselves at the expense of outside investors.
2. Summarize in a single paragraph (not to exceed 100 words) the "Essence" of The Changing Role of Management and explain its importance.
Single-Period Inventory System. The hospital cafeteria makes one large batch of macaroni and cheese each morning. If the cafeteria runs out of macaroni and cheese, the last few customers are less than satisfied, but if the cafeteria makes too much, i..
Practice with the rule of 70: If you inherit $10,000 this year and you invest your money so that it grows 7% per year.
Should Starwood maintain a cooperative orientation or a competitive orientation with its suppliers for the kinds of items described here? Why?
HR departments are being asked more and more to play a key role in creating a high-performance organization.
What is the purpose of an organization. Why do organizations exist. How do managers measure and assess the effectiveness of an organization
As firms become increasingly focused and specialized, the supply chain performance grows in importance. Money spent with suppliers represents a huge portion of most firms' revenues. Can you practice the types of supply chain management without the et..
Terminal values are beliefs that will never change in a person’s life. According to Kohlberg, 95% of young Americans are at stage 2, in their moral maturity. Very few people can be categorized as “stage 5 or. Ethical dilemmas often result from pressu..
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