BLAW question please help Electronic Seller Corp receives a purchase order for 5
ID: 427353 • Letter: B
Question
BLAW question please help Electronic Seller Corp receives a purchase order for 500 Sony televisions sets from Big Retail Store. The order does not specifically state a price, but it does specifically identify the model number of the desired televisions. The order form provides for payment in cash within 90 days of receipt of the televisions. The Electronic Seller Corp's acceptance form sets the price of the televisions at S1000 each and makes payment in cash due within 45 days of receipt of the televisions by Big Retail Store and requires 10 percent simple interest on the unpaid balance. The acceptance form is mailed to Big Retail Store when the order is processed. The purchase and order forms are both in writing and signed by the respective agents of the corporations. Big Retail Store doesn't read the Electronic Seller Corp acceptance form until it receives an invoice for payment 25 days after the televisions are shipped. Big Retail Store thinks a reasonable price for the televisions at the time of its order was $980 each and it believes it should have the 90 days to pay. Identify the legal issues, describe the applicable laws, and then make an analysis of who should prevail. State any assumptions you make for your decisionExplanation / Answer
Legal issues:
The legal issue that arises here is failure of big retail store to go through the acceptance mail from electronic seller corp. because the acceptance mail is something that not only states the acceptance by electronic corp. but also other conditions like payment terms, price, period within which payment needs to be made, discounts if any in case of early payment, penalty in case of late payment, break up of price showing the various costs, tax rates etc. hence it is the duty of big store to go through the mail from electronic seller corp. & hence it is forced to accept the terms stated by electronic corp.
The applicable laws here can be consumer protection act. Because here we can consider big retail store as a consumer to electronic corp. considering the rights of the consumer under the consumer protection act, the customer has the right to be informed quantity, quality, purity, price of the goods etc.
From my view point, in this case electronic corp. would prevail. This is because it has fulfilled the above mentioned right of right to be informed to the customer through email. It is the failure of big retail not to have gone through the mail (assuming it is not necessary for electronic corp. to call & inform that it has sent a mail of this sort, it is not practical for electronic corp., to call & inform all of its customers for that matter). Hence to conclude, I would support electronic corp. & big store must accept the goods & pay the price for it in the invoice.
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