Reference no: EM131671991

Assignment

Read the Following Scenario

You are one of five owners of Outside Settings (OS), a profitable company that sells outdoor furniture from its mega-sized retail store in Florida. OS also sells furniture nationwide to customers through internet sales.

OS buys most of its furniture inventory from U.S. manufacturers. OS also makes and sells a line of custom furniture built to customer's specifications in a woodworking shop next to its retail store.

As sales have increased, OS has encountered more contract-related problems and disputes arising from sales with furniture manufacturers, custom furniture sales, and internet sales. For example, hassles often develop with manufacturers when OS places an email purchase order to which the manufacturer does not reply, but simply ships nonconforming goods or ships orders too late to meet customer needs. Costly problems also often occur with custom furniture sales when customers cancel orders after the furniture is built leaving OS with goods that are not saleable or must be sold at substantial loss. Another problem area is related to internet sales where customers often claim the sales contract is confusing or incomplete sometimes resulting in mistakes in orders and cancellations.

These problems are time-consuming, detrimental to the bottom line, and can create damaging publicity and a negative image for OS.

You and the other owners have discussed these problems and ways to minimize disputes and potential liabilities for OS arising from its contract agreements.

You agree to develop sample form contracts designed to minimize contract sales disputes and possible liabilities for OS.

Instructions

There are two parts to this project. In the first part, you will create three sample contracts. In the second part, you will write a brief memorandum.

Part I

Create the following three sample contracts for OS that are all consistent with UCC rules regarding sales.
Create a standard form sales contract to be used to purchase furniture from manufacturers.
Create a standard form customer sales contract for custom-built furniture that includes an order cancellation policy.
Develop a standard e-contract form for internet sales of OS furniture that includes shipping policies and procedures.

Part II

Write a brief memorandum addressed to the other owners. Write in depth, comprehensive analysis and explanations to support conclusions

Explain the following:

Analyze and discuss how the standard form sales contract (created in Part 1. A. above) for purchase of furniture from manufacturers will help prevent or minimize contract disputes and possible liabilities for the company.

Analyze and discuss how the standard form sales contract (created in Part 1. B. above) for custom-built furniture will help prevent or minimize contract disputes and possible liabilities and losses for the company.

Analyze and discuss how the standard form e-contract (created in Part 1. C. above) for internet sales of OS furniture will help prevent or minimize contract disputes and possible liabilities and losses for the company

Format for Report

Create a Word or Rich Text Format (RTF) document that is double-spaced, 12-point font, Arial or Times New Roman. There is no page requirement. Write clearly and concisely.

Use the given scenario and facts to create the sample contracts; do not use contract forms from the internet - that will be obvious and may result in grade penalties.

Include a title page with your name, course/section number

Use in text citations

Include a References list of cited resources

Use in text citations

Include a References list of cited resources

Use legible 12-point font, such as Arial or Times Roman

Review the Contracts and Memorandum

Thoroughly read the contract and memorandum to ensure all required elements are present. Use the grading rubric to ensure that you gain the most points possible for this assignment.