The following represent my reply to a friend analysis done on the case study including Don and the company selling Scuppernong grapes. This article aims at assessing the situation and rule out possible ground not covered comprehensively with regard to the case study scenario.
I do not entirely concur with my friend on certain grounds involving the case study analysis. One is that the seventeen year old is treated as a business associate who has the power to make certain decisions involving the company. Therefore; the seventeen years old if he is not a business associate the contract should come to a halt, however; if he is treated as a business associate then the signing of the contract is legal and legal implication might be employed in case any of the parties breach the contract.
Both parties do not have to necessarily discredit their business relations since the contract can be renewed to cover both business person interest and ensure mutual benefits among them. Moreover, since the two involve a supplier and a seller, the rule governing payment of supplies might apply to make sure that Don pays on time. This rule outline that the seller must pay a minimum of 5% of all accounts that are not paid within seven days of the invoice date. It is also unethical to stop doing business with Don after he has worked tirelessly to advertise the Scuppernong grapes and create awareness in the market. Therefore; both parties should be engaged in a business meeting to solve their conflicts as business persons through sharing of obligation and setting standard procedures and terms of business which can result to legal interventions if they are violated.
Though the two business persons have a profound business relationship, they should move ahead and formulate a formal contract which can be renewed annually to ensure both parties are satisfied with the terms of the contract. Ceasing to do business with Don may pose more problems in the future. Therefore, the contract should be formulated on the basis of trust and integrity to prevent issues that might occur in case any of the two seek legal intervention.
Jennings, M. M. (2010). Business: Its Legal, Ethical, and Global Environment. New York: Cengage Learning.
Miller, R. L. (2012). Fundamentals of Business Law: Summarized Cases. New York: Cengage Learning.
Plimpton, L. (2007). Business Contracts : Turn Any Business Contract to Your Advantage. Philadelphia: Entrepreneur Press.