TAKEM’S: A Question of Law and Morality. Judy Dunnagan Liberty University Dr. Dean Portier Abstract Takem’s is an appliance store in the state of Virginia serving the residents of the Appalachian regions of Virginia, Kentucky, Tennessee, and West Virginia. The business model which is currently being conducted in the appliance store has been called into question by one of the customers who has recently purchased a computer on credit. The owner of the store, Tommy, is now contemplating what should be done to handle this situation and protect his interest in the future. In this discourse, the author attempts to reveal to the reader the alleged infractions that Takem’s may be liable for regarding the situation with his customer, Ms. Sally …show more content…
The issues of unconscionability, punitive damages, contract law, and holder-in-due-course will be deliberated. In addition, the law of the Bible will be conferred to reveal what God, the Creator of law, says regarding treatment of the poor. Overview Tommy Takem owns a small appliance store in the southwest part of the state of Virginia. Tommy has built his business on targeting the poor, unsophisticated, and uneducated in the Appalachian regions of Virginia, Kentucky, Tennessee, and West Virginia. There is little competition in the region where he sells his goods; therefore, he charges 10-20% higher prices than the nearest retail competition. Furthermore, as a ruse to increase sales, Takem’s has hired a few high pressure salespeople to go door-to-door selling the appliances and electronics at a markup of 30% more than his retail location, though this information is not disclosed to the purchaser. Also, as most of Tommy’s clientele have poor credit, the financing is handled by Takem’s Appliances as well, with an additional charge of 15% plus the highest interest rate allowable by …show more content…
Walker, Takem’s has the statutory law of contracts in his favor. In a contract, the seller and the purchaser have certain rights and obligations. Four basics must be met for a contract to be created (Chrisman, 2014). First, the offer has to be made. In the case at hand, the door-to-door salesperson made an offer of a computer to Ms. Walker. Second, the consideration has to be accepted. Ms. Walker accepted the offer to purchase a computer. The third step is capacity. The purchaser must be legally capable of entering into a contract; minors and the mentally incompetent are excluded in this case. Takem’s has given Ms. Walker the computer in exchange for her payments on her store account. Finally, the intention to enter into a contract has to be present. Ms. Walker signed a bill of sale, a security agreement, and a negotiable promissory note- which is an unconditional promise to pay a certain sum of money at a certain time in the future. Though Takem’s has the advantage to combat her claims, Tommy needs to ensure that his salespeople have not made any false statements or misrepresentations to Ms. Walker as this could have legal implications for the store and against the contract (Vaccaro, 1987). Ms. Walker is legally bound by the contract she agreed to in exchange for the computer; however if there has been any misrepresentations or false statements Ms. Walker may be able, with legal assistance, to call the contract into question
I was assisting Vince in a deal with a new potential buyer. He offered a structured deal stating that he would authorize his company to pay a higher price, if we report selling the product for a lower price. I don’t want to get caught doing this, because I know it is unlawful. Vince reassured me it was not an uncommon deal, and that the product would still be going for a good price. We even had a solid plan on what to say in the event that people suspected us of doing such a thing. The buyer could get half the money, Vince and I could split the other half and no one would ever know.
Critical Response: Given the three possible responses from the book, I feel like #2 is the most ethical of the three. However, I feel like all three aren’t satisfactory ways to treat this situation. I will analyze them one by one, then give my opinion of what the salesperson should do.
In conclusion, finding out the truth, the facts, and the goal of justice should be the main purpose of any civil case. Sadly, the judicial process gets in the way. The legal system becomes unjust and in some cases, justice is never served. Seeing the story unfold and reading about the struggle between wealth and power and justice is exciting, yet saddening. The book matters and should be read by all, from people who are studying the legal system to people who are not. It is an emotional and engaging book. It can’t be forgotten. One man can make the biggest difference and finding the truth is much more fulfilling than any riches.
The four elements of a contract are the agreement, the consideration, contractual capacity, and a legal object. The oral agreement between Sam and the chain store satisfies the agreement element of a contract definition because when the chain store offered to sell Sam 's invention at their stores, Sam accepted by agreeing to ship 1000 units in exchange. The second element of a contract, the “consideration of each party,” is satisfied because Sam and the chain store have something to give the other (1000 units of the invention in exchange for the exclusive sales of the product at their stores). The third element is “contractual capacity,” which may or may not be fulfilled since we do not know Sam 's age or whether
Deere & Company (Deere) has been experiencing a decrease in its profit margins for one of its aftermarket resale products, specifically the gatherer chain, over the past couple of years. Currently, the cost-price ratio is at 80% compared to last year’s 50%. The purchase cost for the gatherer chain has been steadily increasing, while the aftermarket price has been decreasing. Deere has been budgeting its price to match that of a major competitor, which has been causing the decrease. The company’s main supplier of its gatherer chain is Saunders Manufacturing, with which Deere has established a long term relationship. The owner of Saunders has a reputation of being a tough negotiator, and is someone who is known for not willing to share financial information about the company. However, the U.S. Department of Commerce has provided financial estimates in Saunders’ industry as follows: material spend, 42%; direct labor, 16%; indirect labor, 6%; Overhead, 20%. These percentages are helpful to Deere because they can be used in the negotiation process with Sanders. Since Sanders will not share any specific cost information, Deere is able to use these estimates as a way to justify Sanders reducing its prices. Using these estimates during the negotiations might also incentivize Sanders to provide accurate numbers for its specific manufacturing costs.
Mike recently purchased a motorcycle for $4,000 but has had extensive problems starting the motor. In disgust at not being able to start the motorcycle, Mike shouts to his friends, "Any of you want to buy this thing for $20?" A contract will be formed if a friend gives Mike a twenty-dollar bill.
However prior to the modern understanding of Consumer Rights there was a understanding of Caveat Emptor – Buyer Beware –this has been a fundamental premise of consumer wellbeing prior to World War ‖ , relation to transactions, principle that the buyer purchases at his own risk in the absence of an express warranty in the contract . This common law rule assumes that buyers and sellers are in an equal bargaining position. However there has been evident change in consumer rights which have contributed to the precedence of using Caveat Emptor is no longer acceptable, apparent in the case ACCC v Hewlett Packard Australia (HP), illustrated that no longer can a company ...
Vicky must avoid harming the powerless versus harming the powerful. The powerless in this case are the other stores that are going to compete with K.I. in the New England states region. Vicky is in charge of coming up with a unique pricing strategy that will run the competitors out of business within an 18-month period. The other competitors’ stores are considered powerless when compared to the gigantic and powerful Koke International. Vicky must consider the harm that is going to affect the powerless stores, which will lead them to bankruptcy according to Wendy’s plan. Vicky must also consider harming many versus harming few. The many in this case would be employees of the other five major players in the region and the few are K.I.’s employees. If the plan is successful then K.I. becomes a monopoly in the region while the competitors go out of business leaving their staff unemployed. Therefore Vicky must be concerned about the harm that is going to affect the many left unemployed versus the harm that is going to affect the few at K.I.
Rehnquist, William H., Brennan, William J. "A Casebook on the Law and Society: What Rights
Richard Bennett has become aware of a rather large problem in regards to unsold inventory of Centurion Media’s advertisements. This problem involves a contract created by the new Centurion Media cable division president Joseph Fowler. The basics of the contract and what gave Bennett such trouble was that Centurion Media would be forced to sell their unsold inventory to Northpark Media. Another part of the contract added that Centurion would also have to sell the inventory at a major discount rate. Bennett immediately knew that this spelled trouble for himself and his team. There were several other key parts of the contract that made Bennett and his sales
Since the elements were met to satisfy an actual contract being made, with promises albeit moral and legal, the behavior in which Johnny executed warrants a breach of contract on his part. Also to note is Johnny is not a merchant under the Uniform Commercial Code (UCC), which defines a merchant as “a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction” (American Business Law Journal, 1970). Had Mark been identified as a merchant, he would have been held to a different set of rules and Johnny would have been protected, but Mark is a casual seller and not held to a higher standard of
After seven years in college, Tommy Callahan, who isn’t exactly the sharpest tool in the shed, finally graduates with a BA. He moves back to Ohio, where his dad owns an Auto Parts company. Despite his ineptitude, because his father owns the company, Tommy gets shot straight to the top of his father’s company. Not long after returning home, Tommy finds out his father is getting remarried. The excitement of having a new family is cut short when Tommy’s father dies of a stroke on his wedding day. Though the death of his Dad is troubling, there is little time to mourn. The family Auto Parts company relied heavily on the salesmanship of Tommy’s father, and without his drive and guidance, the company is in danger of getting bought out by a bigger corporation. With no experience to back him, and an academic past that does more to damage his credibility that establish it, Tommy volunteers to fill his father shoes, “ I know I’m probably not the answer you guys are looking for but I feel like I oughta do something.” (Tommy Boy). The board has little confidence in Tommy, but they don’t have a better alternative, so Tommy sets out with the best of intentions, to save his fathers legacy, and the livelihood of his home town. Eventually Tommy succeeds in saving the business, exposing corruption in the process.
It is not hard to comprehend, for instance, that what is considered "client administration" in one nation might be completely wrong or even hostile in another. Along these lines, Wal-Mart 's German rivals merrily watched Wal-Mart outrage its new clients by stowing their buys. These contenders realized that thrifty German customers incline toward this undertaking not be finished by outsiders. While more well-to-do German customers may value this "administration", German rebate customers viewed this as an interruption into their security for which they were paying a concealed work cost. Wal-Mart 's blunder was intensified by its utilization of plastic packs in a general public exceedingly touchy to issues of manageability and matters of nature. Consequently, for reasons of both security and nature, Germans will take their own expansive packs to markets to sack and convey their own buys. This illustration is illustrative of Wal-Mart 's inability to value its clients. The organization 's utilization of greeters and its business of the "ten-foot guideline" whereby representatives would offer backing to customers were counter-beneficial decisions in a markdown market environment. Numerous customers were startled by these practices. Some even felt attacked. For instance, supermarket chain, Coop, which started in Germany, is a decent case of what
The relationship between law and morality has been argued over by legal theorists for centuries. The debate is constantly be readdressed with new cases raising important moral and legal questions. This essay will explain the nature of law and morality and how they are linked.