LTE Services provides maintenance work on LTE Craftworks products and on machine

Question

LTE Services provides maintenance work on LTE Craftworks products and on machinery produced by others. It is a lucrative business that provides 40% of LTE’s revenue (via dividends and distributions).

LTE Services has the following issues:

1. Willy’s Woodworking Workshop (“W3”) sued LTE Services, alleging that LTE Services’ salesperson who sold W3 a three-year service contract, lied about the terms of the service contract, and that LTE Services provided poor service. W3 paid for the first year, but refused to pay for years two and three of the contract. LTE Services counterclaimed for the unpaid sum due on the contract, and denied W3’s allegations.

Define:

Issue

Ruling

Application

Explanation / Answer

LTE Services provides maintenance work on LTE Craftworks products and on machinery produced by others. It is a lucrative business that provides 40% of LTE’s revenue (via dividends and distributions).

LTE Services has the following issues:

1. Willy’s Woodworking Workshop (“W3”) sued LTE Services, alleging that LTE Services’ salesperson who sold W3 a three-year service contract, lied about the terms of the service contract, and that LTE Services provided poor service. W3 paid for the first year, but refused to pay for years two and three of the contract. LTE Services counterclaimed for the unpaid sum due on the contract, and denied W3’s allegations.

Define:

Issue

Ruling

Application

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