Reference no: EM132634174

How would you give feedback to my class mate?

In this scenario, the boss's suggestion that the company's largest customer refuses to pay last month's bill, because the goods are not what they ordered, and they should file a law suit to collect the $72000 bill, is unacceptable. The dispute should not result in legal action at this time because it is illogical for a manufacturer to alienate its largest customer out of ordinary dispute.

As a student of business law, my suggestions would be:

• Not to refer the law at all, as it is a minor dispute and could result in loss of the largest customer
• Negotiate with the customer to make payment for the already shipped items proving that they match all the parameters specified in the contract
• To ship a new batch of goods to the customer meeting all the specification of the product provided by the customer
• If the customer does not accept the new shipment, write off the loss for tax purposes
• To appoint an impartial arbitrator to mediate the dispute and take final decisions, to save the cost of court trial
• At last in a worst-case scenario file a lawsuit for the breach of contract and accept that your largest customer will no longer do business with your company