Takem’s Appliances and Electronics

LLCAuthor Ashraf Bani DomiFebruary 16, 2018ACCT 511 Advanced headache well-grounded philosophy for AccountantsProfessor Dean Poirierindecorum UniversityAbstr playactI would like to crap in my research paper and point break the rightfulness and the logicality of the sustain that replicationms Appliances and Electronics LLC. use to sell their electronics as he had this raw(a) intellection of merchandising them door-to-door which was a success and that lead to fool receipts of this success by increasing his prices to 30% more than than if he delivers them to the nodes house. Also, I provide explain the honorable consequences that the procedure Takem use in the region he lived in.Also, explaining the kernel of breach of the concentrate and what constitutes the lowest requirements in search of remedies in these kinds of mickle. And for the gross gross revenue to be permissible, they must encounter e truly heavens of the legal criteria. Also, Takem must strand h onourable accountability that bear a counsels place under the sociable responsibility to the sm altogether(a) community he lives in.The legal discipline of Sally pedestrian vs. Takems Appliances and Electronics, LLC contribute be analyzed and investigated regarding endure if the conclusion of this case is it legal, is it moral/ethical? IntroductionThe world of commerce and close blood line relationships atomic number 18 initiated on a iron out. taking into custody of contract impartiality is crucial for all bloodpeople, owners, and managers. Since most commercial recordings are constructed on contractual relationships.A decent introductory point would be an empirical explanation of a contract. Contracts include more than an arrangement or an agreement among devil or more comp matchlessnt parties. A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the per social classance of which the law in close to way recognizes as a duty (Restatement (Second) of contract chapter 1 nitty-gritty of the term).The contract dope be exactly described as a unforced exchange of promises, creating obligations that, if defaulted on or failed to earnings, send away be enforced and remedied by the motor inns.It is dogmatic that we understand as when agreeing to equipment casualty of a contract, entities are created and defining their particular rules and obligations. This differs from early(a) domain of a functions of the law, such as torts, w here rules and obligations are compel on them.Furthermore, a valid contract can create a federal agency in which parties to the contract can predict, with some certainty, their upcoming relationship be father each fellowship knows that the taps impart hold them to their agreement.Despite the occurrence royal coquets go away enforce a valid contract after it has been created, what the parties agree to in the premiere place in comm wholly unrestricted. Mr. Tak ems origin Model is it Legal?When we take apart contract law, the focus is plebeianly on the problems that can arise. It whitethorn on that pointfore is litigate that most contractual relationship experiences complications. In fact, most contracts are privileged or resolved to the mutual satisfaction of the parties, and the courts break elaborate in a slim sleep with up of contractual agreements, when an unfeasible trash arises.Hence, addressing our case study in this shed we withdraw to outline some introductory terminology that we discussed above and trying to rehearse it to our lymph node, named Takems Appliances and Electronics, LLC. Takems Appliances and Electronics, LLC owned and operated by Tommy Takem. Tommy Takem owns Takems Appliances and Electronics, LLC that participates in what cleverness give the impression to some to be a very profitable pedigree.However, we need to read through the surrounding slew and the case scenario to master and nominate ou r invitee what are the shell avocation come he could proceed with his production line, and whether we agree with his billet practices or non, our constrain her in this case is to provide a legal command in this section and then allow see how to evaluate, and explain to him the legal consequences as well as his potentials, nevertheless from the scratch line glance and the studying we can see that most of our guest Mr. Takem and his line of furrow activities obeying to law, tho still need to be examined, and also we to talk most some ethical motive practice that could prime un runed results. Which is something we will c all over in more expand later, in our case study.Takems business (Takems Appliances and Electronics, LLC) is placed in a rural area of southwestern Virginia, and the majority of its customers are poorer residents of the Appalachian regions of Virginia, Tennessee, Kentucky, and West Virginia. According to our case, Sally footer vs. Takems Appliances an d Electronics, LLC, our lymph gland, Tommy Takem. interested in concentrate his business around these rural areas because due to several(predicate) reasons, there isnt much competition for his business which was an prospect for his business.But the disadvantage was, most of the people who lived in these areas were relationly unskilled enough to understand, poor credit, unsophisticated, and opposite reasons. Moreover, there was a pick out for appliances and electronics. And because there werent m all an(prenominal) appliances stores around those areas, people needed to purchase them. Tommy took advantage of that and extendd his prices between 10-20%. This subroutine adapted by our client is railroad siding the precise importation of the contractual law.Tommys business has been doing so well after the increase in the prices. Tommy newly came up with an idea for expanding his business. He finalised to begin selling his appliances and electronics door-to-door in the above -described regions. Until recently, it had been working great. He hired some great salespeople who sincerely know how to apply the pressure and invert up the heat. Further, since he is providing a portion to these societies by transporting the goods to their homes, he saddles closely 30% more than he would if the customers came to the store. Apparently, the salespeople do non mention this fact to the customers.Lately, Tommy true a earn from a disgruntled customer named Sally Walker (an elderly leave behind lady who lives al whiz in the hills of Southwest Virginiaher children and grandchildren defend all moved out of the area.) She has fallen behind on her payments on her new laptop data processor, and Tommy had started collection efforts. He had not yet referred it to a lawyer.The earn is very well written (which would be unexpected since Sally is not very well educated.) It indicates that her granddaughter, who recently graduated with an MS in Accounting from Liberty Un iversity Online helped her with it. It argues that the correct deal is conscienceless and therefore unenforceable.Moreover, the earn emphasizes that Sally has paid enough for the computing device that she purchased and will not pay some(prenominal) more.Finally, the letter indicates that if Tommy pushes the matter more, Sally threatens to sue for retributory damages and write earn to the editors of various local papers throughout the region to ruin his written report. As we can see from the above surrounding circumstances and from the description of the contract, our client has been operating with the respect in accordance with the law and legality in most of his business transaction, as general roles, The foundations of Corporate Governance demand that organizational practice follows the legal requirements.In current snips, news reviews of industry wrongdoings have forged uncertainty on the stinker line that submission is definitely the far-flung procedure. (Rea content ionic Hypothetical Legal Scenarios Business Law for Accountants, 2013) patronage the allegation letter from Ms. Walker, and despite the ethical give regarding the enhancer in the new adapted policy and increase of 30% on the delivered items in this section, just there is however still an ejection to the legality of the later menti singled of the 30% this should be communicated to the other partiers of the contract.Whether the Argument in the letter has any Merit?In response to a letter recently received which was written by Sally Walkers granddaughter of one of his customer, from lawyer outdoor stage of view, the indication of Sallys letter concerning and arguing the unconscionable act of our client (Takems Appliances and Electronics, LLC) by excessively charging their customers. In analyzing the spring there could thee potential legal obligations first one, if Ms. Walker is right enough about bringing this case to the court, the court may look upon the contract from the un conscionability part of it, spot court applies this point very scarcely, barely still feasible defense to the complainant side due to Ms. Walker designates.The sanction one is that Ms. Walker could recall for the vindicatory damage claim, as explained below.The third one is regarding the undisclosed charges for the delivery services.Typically, court will enforce a valid contract after it has been formed, In deciding the validity of consideration, courts will not look to the amount or type of considerations or the relative bargaining power of the parties (except in the rarefied case of a contract so burdensome on one political party as to indicate unconscionability) (ABLA, 2017).My concern here is to provide my client with a rational and accurate sound legal standpoint and preventing him from a further and a coming(prenominal) day legal consequence. On the other hand, when Ms. Walkers title that the installment and the amount she has paid for the computer so far, is enou gh, I see this all was agreed upon before forming the agreement with her.Obviously, I would advise that each one of us should read and go through any kind of contract in a way that can clear and ask out any obscure completely, read through your paper one two or whatsoever, moreover, always seek for an expertise advise in most of your relationship areas, and fulfil yourself of being an unexpected position.Should he Take the Threats Seriously?As react with maintenance in determining whether my client should take Ms. Walkers letter in a in effect(p) manner because we are afraid that the court magnate rule to her advantage. When it is claimed or appears to the court that the contract or any clause thereof may be unconscionable the parties shall be afforded a average opportunity to present evidence as to its commercial setting, purpose and effect to aid the court in making the determination. (106).The Restatement also has a similar rule which tracks the UCC provision. (107) The purpose of the unconscionability tenet is to expressly allow courts to police contracts for terms they deem unconscionable. (108) Though unconscionable is not defined by the UCC, some definitions give a feel for what the originators of the doctrine may have intended. One court has defined it as that which affronts the sense of decency. (109)One lexicon definition is lying outside the limits of what is reasonable or acceptable shockingly dirty, harsh, or unjust. (110) (Bar-Gill, O., Ben-Shahar, O., Marotta-Wurgler, F. 2017).Another word from the law that ineluctably to be added here is that the procedure in which my client (Takems Appliances and Electronics, LLC) following by charges 30% more to delivering the appliances and electronics to the customers door-to-door and the fact that his salespeople intended or energy have been instructed by Mr. Takem not to mention it to the customers.Despite the fact that my client, Mr. Takem, intentionally instructed them to mention the 30 % increase or not, while he is the owner of the business and all of his employees should follow his instructions. The court might obtain this conclusion from his business take away and count this over against him as a form of misleading, uncommunicated as one of the criteria to validate a contract, misrepresentation, misrepresentation fraudulent or other entrance to breach this contract or similar contract since the court will incline for the advantage of the plaintiff (Ms. Walker) ships connection of this contract against my client (Mr. Takem).As we go more through Ms. Walkers letter while she emphasizes that she is going to sue for punitive damages, whereas, punitive damages cannot normally be apt(p) in contract disputes, here I wouldnt worry about this phrase all my client (Mr. Takem), as this is merely a threaten word in Ms. Walkers letter.However, this part in some case could be unpredictable, and because they are usually compensated in addition of the plaintiffs demonstr able injuries, and are submited only in distinct cases, but to act as a prudent defends of my client (Mr. Takem) we need to supply him with the sound of law regarding this point, as a part of a lawyer due diligence where Jurors dirty money punitive damages too often.The amounts they award are erratic and unpredictable, even though they start from shared moral intuitions about the reprehensibility of defendants conduct. And when they deliberate and decide as juries, both the size and variability of the awards increase. Feigenson, N. R. 2003).Its ambiguities which need to be corrected proximately before any serious consequences superficial. Furthermore, the major ambiguity in the business operated in this case is the lack of transparentness in its transactions with their customers this absence of transparency is most deceptive in the prices and the percentages of charge that they put on their products and their services. This lack of transparency, when visible, could cause serious issues to any business, and, an educated customer could very easily take them to court for misconduct and misleading if they dont change their order and honestly advise their customers of their business perfect.Should he Proceed with the Collection?To give my legal advice, I would advocate that my client (Takems Appliances and Electronics, LLC) not to proceed with any further step in collecting the remaining payments from Ms. Walker. However, this might result in having other customers doing the selfsame(prenominal) as Ms. Walker. Which is refusing to pay and threatening Mr. Takem again by suing his business and sending letter to media to ruin his business reputation.We would advise that Mr. Takem take longer period of time than usual before making any efforts for future tense collection in general, I would proffer that Mr. Takem take an initial step by offering a payment implication for certain customers with some certain conditions with that he can plan ahead of time for hi s future project of establishing his own backing company, in main time this will participate in reshape his reputation in the area and encourage his customers to pay one time.Keeping the aforementioned trends, Takem needs to go beyond the literal meaning of the law and let go of unfair and /or fraudulent corporate conduct this includes false advertising and/or ambiguous sales deals (Realistic Hypothetical Legal Scenarios Business Law for Accountants, 2013)Would Mr. Takem Set up a Financing Company? And what Should he do to Protect himself?I would strongly recommend that Mr. Takem should go ahead in adopting this step, in order to prevent and protect his business from any future consequences. But the best would be if he can fall in with an outside financing company to take over this portion of his business, in a separate entity form, to avoid and mitigate future obligations and losing his customers.Alternatively, seeking for an external collection agency to handle in arrears or ga ther payments. Seeking a collection agency-or evaluating the one you have-can improve bottom-line results while maintaining your professional image. Overall, be sure to find a company that delivers results and matches the image you want to project. Use this list as a guide of what to expect (Anonymous, 2015). With this step-in mind Mr. Takem should put more consideration to the law that regulates and the requirement to establish this kind of business from the participation of the world-wide openness, full disclosure and the complete condition associated with any arrangement.Finally, he wants to Know What do you Think About his Business Model- regardless of whether you Conclude that it is Legal, is it Moral/Ethical?I believe the majority of us will agree in response to Mr. Takems ethics, and the way he is conducting his business is unethical, according to the assumption case events. Unethical port that is not illegal frequently falls in a grey area between right and wrong that ma kes it difficult to decide what to do when it is encountered. Furthermore, different people have different perspectives regarding what is ethical and what is unethical. Though, there is sometimes a difference between behaviors that are unethical and activities that are actually illegal.The definition of business ethics and the answer to the suspense of What is Business Ethics in gross revenue? is the principles, morals and standards that guide the behavior in the world of business and in sales relationships too (Spro, 2013). Ethics in sales is receiving a lot of attention over recent years even more so, as it is the correct way to conduct business in the long term and produce long-term sales results for the company and for the sales police squad.Moreover, Business ethics in sales can either come from the company itself, this means that the companies ethics guidelines are written into their policies and therefore can be reflected or reproduced through their sales team management an d then the sales team too (Ivan, C. D. 2014).Therefore, Doubt regarding corporate freight to ethical obligations has always existed, particularly when maximation of profits might be at risk. However, despite such doubt two views have singled hope. First, a view has persisted that corporations at least feel compelled to comply with the law. At times violations of law might occur. However, this was not thought to be the pattern of behavior for corporations generally.Conscious violation of law was not the behavior expected. Second, a view has begun to be echoed that business corporations are increasingly cognisant of ethical obligations beyond literal respect with law, and increasingly feel compelled to act then (Di Lorenzo, V. J Bus Ethics, 2007).