Effective sales techniques

Assignment Help Business Economics
Reference no: EM13851063

Alfred, Beth, and Charles orally agreed to start ABC Computers (“ABC”), a business to manufacture and sell computers. Alfred contributed $100,000 to ABC, stating to Beth and Charles that he wanted to limit his liability to that amount. Beth, who had technical expertise, contributed $50,000 to ABC. Charles contributed no money to ABC but agreed to act as salesperson. Alfred, Beth, and Charles agreed that Beth would be responsible for designing the computers, and that Charles alone would handle all computer sales.

ABC opened and quickly became successful, primarily due to Charles’ effective sales techniques.

Subsequently, without the knowledge or consent of Alfred or Charles, Beth entered into a written sales contract in ABC’s name with Deco, Inc. (“Deco”) to sell computers manufactured by ABC at a price that was extremely favorable to Deco. Beth’s sister owned Deco. When Alfred and Charles became aware of the contract, they contacted Deco and informed it that Beth had no authority to enter into sales contracts, and that ABC could not profitably sell computers at the price agreed to by Beth. ABC refused to deliver the computers, and Deco sued ABC for breach of contract.

Thereafter, Alfred became concerned about how Beth and Charles were managing ABC. He contacted Zeta, Inc. (“Zeta”), ABC’s components supplier. He told Zeta’s president, “Don’t allow Charles to order components; he’s not our technical person. That’s Beth’s job.”

Charles later placed an order for several expensive components with Zeta. ABC refused to pay for the components, and Zeta sued ABC for breach of contract.

Not long afterwards, ABC went out of business, owing its creditors over $500,000.

1. How should ABC’s debt be allocated? Discuss. Be sure to address what type of formation ABC Company is.

2. Is Deco likely to succeed in its lawsuit against ABC? Discuss. Be sure to address contract law and duties.

3. Is Zeta likely to succeed in its lawsuit against ABC? Discuss. Bd sure to address authorities.

Reference no: EM13851063

Questions Cloud

Create a list of five current goals you want to achieve : Create a list of five current goals you want to achieve while a student at NAU and/or future goals you want to achieve after graduating from NAU. Goals should be written in "SMART" format and should be specific to nursing and/or school.
What were the consequences of that approach : What is an area of life in which you have experienced people treating arguments as a kind of war? What were the consequences of that approach
Retirement of planning : In planning for your retirement, you would like to withdraw $50,000 per year for 20 years. The first withdrawal will occur 20 years from today. What amount must you invest today if your return is 10% per year? What amount must you invest today if you..
Explain why temporary and permanent fiscal expansions : Explain why temporary and permanent fiscal expansions do not have different effects under fixed exchange rates, as they do under floating exchange rates.
Effective sales techniques : Alfred, Beth, and Charles orally agreed to start ABC Computers (“ABC”), a business to manufacture and sell computers. Alfred contributed $100,000 to ABC, stating to Beth and Charles that he wanted to limit his liability to that amount. ABC opened and..
Evaluate how the manager fulfills the expectations of role : Evaluate how the manager fulfills the expectations of the role
What is the present value of such a perpetuity : What is the value today of a $10,000 payment made in perpetuity assuming a 8% discount rate - What is the present value of such a perpetuity?
How do you define faith and doubt in context of your life : How do you define faith and doubt in the context of your life?
Identify firms that periodically shut down their operations : Identify firms that periodically shut down their operations. What are the conditions that exist when they shut down their operations and the conditions that exist when they resume their operations? Explain your reasoning.

Reviews

Write a Review

 

Business Economics Questions & Answers

  What is the equilibrium price and quantity-producer surplus

Assume the demand for balloons is P=40-2Q. The supply is P=3Q. What is the equilibrium price and quantity? What is producer surplus? What is the consumer surplus?

  How much of a yearly increase in the cost of the program

If the company expects to spend $50,000 in the first year of this improvement program, how much of a yearly increase in the cost of the program is the company expecting?

  The current budget deficit of usa is not sustainable primary

The current budget deficit of USA is not sustainable primary because--------

  Explain the pros and cons of the self correcting economy

Rather than the short run effects of decreasing government spending, allow a self correcting economy to bring the model back to equilibrium, the government decides to act to eliminate the output gap through monetary policy. Explain how the government..

  Illustrate what is the change in quantity of money

Illustrate what is the change in quantity of money that will eventually result. Assume that the currency drain in 0.15 and the desired reserve ratio is 0.05, and show your calculations

  Describe and derive an expression for marginal cost curve

The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. Describe ..

  Valid mathematical expression for total revenues

Micro media offer computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micro media is currently planning a two-day seminar ..

  When companies expand into the international arena

When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discuss which kinds of international strategies are most appropriate for compani..

  Clayton act when they lead to less competition

Which of the following activities are prohibited by the Clayton Act when they lead to less competition?

  What saving rate would yield golden-rule level of capital

Consider an economy in which production characterized by the neoclassical function Y=K^.5N^.5. Suppose, again, that it has a saving rate of .1, a population growth rate of .02 and a average depreciation rate of .03. Determine what saving rate would y..

  Describe the equivalent uniform annual cost

Kal Tech Engineering is investigating the possibility of acquiring new automated packaging equipment at a cost. Describe the equivalent uniform annual cost (EUAC) if MARR for the company is 10%.

  Identify and talk about at least four companies

Identify and talk about at least four companies that you regard as having characteristics listed here. Suppose you bought common stock in each of four companies identified here.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd