Business Case Study: Megalo Simulation
The recent Megalo transaction has brought up several legal issues for our company. The following is a summary of the potential issues that have arisen as a result of the transaction and what they mean for our company.
First, we must define our role in the transaction. In terms of this contract, Burnham is merchant for purposes of the UCC. A merchant is, “is a person who deals in goods of the kind involved in the sales contract. Thus, a retailer, a wholesaler, or a manufacturer is a merchant of those goods sold in the business” (Miller pg. 305).
A major cause of issue in his circumstance is a lack of clarity in the contract regarding risk of loss and when that risk passed from us (the seller) to Megalo (The buyer). Because these terms were not made clear before loss was created when now have to define when it passed. When the risk of loss for the chairs passed.
Our contract with Megalo is a presumed Shipment contract. A shipment contract, “required or authorized the seller to ship goods by carrier, rather than to deliver them to a particular destination (Miller, pg.336). This would indicate that the risk of loss was passed from Burnham to Megalo once they were delivered to the carrier. The damages to the chairs and the lateness of the delivery should be remedied with the carrier.
Due to Megalo’s …show more content…
Checks should always be endorsed in the presence of a bank teller whenever possible. When this is not an option, like in the case of a third-party check, the check should always have the words “for deposit only.” We should also consider obtain an endorsement stamp from our bank. A stamped indorsement, “will indicate that the check is for deposit only to your business account specified by the number.” This will prevent employees from potentially cash our company
First, we must define our role in the transaction. In terms of this contract, Burnham is merchant for purposes of the UCC. A merchant is, “is a person who deals in goods of the kind involved in the sales contract. Thus, a retailer, a wholesaler, or a manufacturer is a merchant of those goods sold in the business” (Miller pg. 305).
A major cause of issue in his circumstance is a lack of clarity in the contract regarding risk of loss and when that risk passed from us (the seller) to Megalo (The buyer). Because these terms were not made clear before loss was created when now have to define when it passed. When the risk of loss for the chairs passed.
Our contract with Megalo is a presumed Shipment contract. A shipment contract, “required or authorized the seller to ship goods by carrier, rather than to deliver them to a particular destination (Miller, pg.336). This would indicate that the risk of loss was passed from Burnham to Megalo once they were delivered to the carrier. The damages to the chairs and the lateness of the delivery should be remedied with the carrier.
Due to Megalo’s …show more content…
Checks should always be endorsed in the presence of a bank teller whenever possible. When this is not an option, like in the case of a third-party check, the check should always have the words “for deposit only.” We should also consider obtain an endorsement stamp from our bank. A stamped indorsement, “will indicate that the check is for deposit only to your business account specified by the number.” This will prevent employees from potentially cash our company