I think that MSL did breach the contract with Macy’s. First, their contract was an exclusive agreement, which implies that only Macy’s had tot sole obligation to sell those products apart from MSL and its related conglomerate. This means that at no one time, as long as the contract held, would MSL engage another party in partnership or joint venture, to sell products prescribed under the contract. When MSL decided to get into another contract with JC Penney (JCP) it would be expected that the agreement would diverge from what the other contract had exclusive rights. In the case study, out of the 2500 designs presented to JCP, about 900 fell into categories restricted under the Macy’s exclusive agreement. Hence, MSL was in breach of Macy’s exclusive contract because under the contract, no other company apart from Macy’s and MSL should have possession or rights to sell these 900 designs. It would appear that the MSL was lured to breach the contract by the promise to earn more. While Macy’s accounted for $ 250 million, JCP brandished their agreement to enable MSL earn about $ 500 million, which was double of what the company was yielding from Macy’s (Stewart n. pag.). While this lure lingered, the contract with Macy still held. Under their exclusive agreement, the contract was to end in 2018. However, the case does not offer details on termination of contract agreement in lieu of the agreed date of contract end. Thus, under the current exclusive agreement with Macy’s, MSL was obligated to ensure that any of the products agreed upon under the contract remained exclusive to Macy’s. Despite owning these designs, MSL had to exclusive rights to engage a third party in their sale because the contract was binding (Chynoweth n. pag.). Re... ... middle of paper ... ...ons. Thus, MSL was oppressed by the contract terms. Another challenge emanating from an exclusion clause is the fact that one party is excluded from legal liability should a breach of contract occur. In this case, Macy’s was exempted from legal responsibility. Works Cited Chynoweth, Paul. Study Paper: The Law of Adverse Possession. Britain: Law Lecturers. 2002, Law Lecturers. Web. Feb 25 2014. Macke, Jeff. Breakout: Domestic Diva Dumped! Martha Stewart’s Retail Love Triangle Ends in Tears. Yahoo Finance, 22 Oct. 2013. Web. 25 Feb 2014. Herships, Sally. Martha Stewart, Macy’s & the Meaning of ‘Store’. Marketplace, 6 Mar. 2013. Web. 25 Feb 2014. Singsank, James J. Long-Term Contracting Handbook. USA: Defense Logistics Agency. 1989. Print. Stewart, James B. No Ruling in Macy’s v. Penney? Try This. The New York Times, 18 Oct. 2013. Web. 25 Feb 2014.
Maxx benefits from chaos by picking up the pieces, merchandise at a discount, when other retail stores close, or have overruns, or unexpected changes in demand and in return pass these savings on to their customers who shop for value (Levine-Weinberg, 2016) This is the demand-side benefits of scale when the consumer rather pay less for name brand merchandise than to pay more for the same designer in the department store. The stores that where having difficulty in the retail market left themselves vulnerable by not defending their position and T.J. Maxx proactively attacks this opportunity with its purchasing power and passes the savings to its customers. This proactive process of attacking and defending is what Wee (2016) calls the holistic and balanced perspective of handling competition. Moreover, this business warfare strategy of attacking struggling competitors is called offensive marketing warfare strategy (Grewal, 2014).
This nationally recognized mass merchandiser that stood as Kohl’s other leading adversary in the market has everyday low prices that were able to compete with Kohl’s promotional events. Wal-Mart also outdid their competition when it came to number of store locations around the country. The weaknesses of this reputable company come to light when shoppers are looking to buy clothes and are not presented with nearly the selection that the department store can offer. Also, their service is not considered to be as helpful as the department stores that can input more expertise when trying on
JCPenney is a chain of American mid-range department stores that is based out of Texas that started over 100 years ago. JCPenny has been successful for most of its time up until the last three to four years. The company is trying relentlessly to overcome the lingering effects of the makeover that former CEO, Ron Johnson, had implemented in order for the company to take a new direction in hopes of increasing sales. The new CEO, Myron Ullman, has taken a close look into the markets demographic segmentation along with the income segmentation in order to attempt to return the retailer back to its old self, which is to appeal to middle-market customers. A couple issues of major concern for the company are the dissolving of Johnson’s Boutiques, the price of their products, and overall revenue.
... several actions presently being taken to refurbish Federated. The company has hired a new CEO, Terry Lundgren, and also appointed an organization within the company to focus on the further development of the Macy’s home division. Between the diversity of quality employees and vendors, they hope to overcome the premonition that the department store is a dying breed. They are well on their way opening seven new firms in 2004.
repugnancy standard when determining whether antitrust laws are implicitly repealed in specific aspects of the financial industry*. The Gordon Supreme Court expanded the set of circumstances of implied immunity from antitrust laws.
This is a challenging time for retail and Macy’s is so exception. There has been a large shift in the last year as profits have decreased and earnings are forecasted to fall this year. There are numerous challenges and obstacles that have caused this to occur, including: irregular weather patterns, too high inventories, a decrease in tourism, limited growth in women’s wear, and a decline in share prices by 45.4 percent. Shareholders are also affecting business, especially one stakeholder in particular, Jeffrey Smith of Starboard Value. Smith has allied with other shareholders to advocate for “real estate spin-offs to lift shareholder value.” In other words, Smith sees more value in Macy’s real estate rather than in the operation of the stores. Morgan Stanley evaluated Macy’s real estate and came up with an aggregate value of $18.5 billion, with a range of $16 billion to $20.8 billion. The previous value was $11 billion. This suggests that the stores are worth more than the operating business.
As for adverse possession, it can be defined as when a person can acquire legal ownership
It’s no surprise that lawsuits have been filed against some of these major retailer stores, but what is surprising is the outcome of some recent ones. Since 2000s there have been a number of litigations brought against Kohls with regards to the way they promote their pricing. However, until recently, most of these cases have been dismissed. In a California lawsuit filed in 2015 and in an article written by Rick Rommel of the Journal Sentinel, “Kohl's Corp., which routinely promotes its discounts off regular prices, has agreed to a $6.15 million settlement with California shoppers who alleged those discounts were false. A federal judge has preliminarily approved the settlement. Under its terms, Kohl's will offer gift cards to people who, beginning
Kohl’s also boasts a loyal customer base and strong brand equity. These strengths are critical to offset their weaknesses. Flaws include an imbalance on sales for men’s products and a lacking online presence. (Kohl's Corporation, n.d.) Another way that Kohl’s is actively counterbalancing their negatives is by capitalizing on opportunities. Kohl’s has found that their beauty sections are an immense source of opportunity. As a result, the company is expanding those departments in an effort to capture those sales that would otherwise go elsewhere. (Wahba, 2014) Finally, Kohl’s keeps the knowledge of their threats at the forefront of their decision-making. They understand that their coupon system can be abused and cause profit losses. They also recognize that price wars in their industry can also be very damaging. As a result, they are working towards more secure methods of offering savings and strategically making efforts to remain the leader for price setting. (Wahba,
The need for the law to recognise possessory and equitable interests in land under a system of registration of title is a contested issue in Australia. The term ‘title’ means the extent of ownership over property as recognised by the legal system. For the purpose of this essay, a system of registration of title means the Torrens title system. The protection of possessory and equitable interests in Western Australia will be discussed, with reference to the Torrens title system and real property. It will be argued that there is still a need for the law to recognise equitable interests in land, however, the Torrens framework does remove the need for the law for the law to recognise possessory interests, in particular the doctrine of adverse possession.
In 2002, CEO of Levi Strauss, Phil Marineau was faced with a tough decision: whether he should sell product at Wal-Mart. In the last five years, Levi-Strauss had lost sales and had to close US plants to move production to cheaper offshore areas. Levi's really needed to revive the brand image to gain back some lost sales and was using marketing to create new advertisements and product placement to broaden their target market. Levi's had tough competition on every level of the price-point spectrum, whether it be high end retailers like Diesel or Calvin Klein, middle vertically integrated retailers like Gap or American Eagles, and on the bottom, private-label brands like Wal-Mart and Target.
Another problem was that Kmart did not correctly anticipate customer needs. For instance, let's say that Kmart buys a new style of shirt and stocks it in pink, yellow, green and blue. Further, let's say that the blue shirts sell out immediately; the store is left with inventory of the three other colors. Yet Kmart doesn't reorder the blue ones because 75 percent of its inventory is still unsold – it's still got plenty of that style of shirt to sell. Wal-Mart, meanwhile, would order a new shipment of blue shirts. Their model takes the customer into account, not the inventory – Wal-Mart understands that it's the color the customers want, not the style (in this case, anyway).
It is well established that an exclusion clause will be valid and enforceable only if it is incorporated into the contract. There are several ways in which exclusion clauses can be incorporated into contracts . One way is by giving a sufficient notice. In J Spurling v Bra...
Leslie was just looking for a partnership that help her to expand even more her brand, one of the sharks offer to her $100,000 and 20% of the company and help her to expand to stores sales that she have never reach before, and she negotiated the prices but at the end Leslie accepted the
Even though Wal-Mart has helped raised international standards in supply chain management in the industry, it does make Wal-Mart’s unethical methods acceptable. In the first three months of a year, Wal-Mart’s revenues triple compared to companies, such as Target. They have the money and resources to follow all labor rights. Wal-Mart is a great example of how multinational companies that have the power to do just about anything that they want. They think of ways to avoid paying for their expenses. They encourage other companies to use labor overseas just so they can continue to supply up to Wal-Mart demands. Wal-Mart continues to use unethical practices regardless of how much criticism they receive, therefore, consumers need to think about what they are supporting the next time they shop there.