Legal Issues in Business Essay Example | Topics and Well Written Essays - 1000 words

Legal Issues in Business - Essay Example As the plaintiff had to purchase concrete from a different supplier at higher prices, the cost differentials were charged on the defendant and were deducted from the dues. The plaintiff allowed the defendant to resume supply on a condition that the supply would come only from a single plant. On resuming the supply, the defendant failed to supply the ordered quantity of concrete on numerous occasions (at least 42). Shortage of raw materials and plant breakdowns were the two primary reasons cited and on some occasions no reasons were cited by the defendant for non- or short supply of concrete. The plaintiff was again forces to purchase concrete from a different supplier and again at higher prices. The plaintiff charged the defendant for cost differentials and deducted it from the outstanding dues. The defendant on the other hand, maintained events leading to non- or short supply of concrete would fall under Force Majeure and hence the defendant was not liable for the cost differentials . The defendant had to suspend supply of concrete due to plaintiff’s non payment and deduction of cost differentials from outstanding dues. ... 2. Analysis Issues Following are the issues that were raised in the trial court and respective findings that the court has to decide on: Issue (a): Was the contract â€Å"sole supplier† or â€Å"exclusive† contract? The finding of the trial was that the contract was not a â€Å"sole supplier† or â€Å"exclusive contract†. Issue (b): Was the Plaintiff’s claim for cost differentials, incurred due to purchase from an alternate supplier to due defendant’s inability to meet quality requirement, during the suspension period justified and allowed? The finding of the trial court was that the Plaintiff was not allowed to claim cost differentials during the suspension period. Issue (c): Can the defendant use force majeure clause to exempt itself from the liability for non- or short supply? The finding of the trial court was that shortage of raw materials would fall under force majeure but not plant breakdown. Hence, the defendant was liable only non- o r short supply due to plant breakdown. Issue (d): Is the defendant entitled to suspend the supply? The finding of the trial court was that the defendant was entitled to suspend the supply. Issue (e): Was the Plaintiff entitled to terminate the contract? The finding of the trial court was that the Plaintiff was not entitled to terminate. The Plaintiff has appealed against all findings of the trial court. Judgement Following is the judgement of the court on the respective issues. The authorities that have been followed and distinguished have been discussed accordingly: Issue (a): The judgement arrived was that the contract was not a â€Å"sole supplier† or an â€Å"exclusive† contract. The judgement was reached based on the reasons that there was no mention in the contract being an â€Å"exclusive one’ neither was

Business research-Second cup Essay Example | Topics and Well Written Essays - 500 words

Business research-Second cup - Essay Example Every employee is trained by baristas (coffee experts) on the various aspects of coffee making, including selection of beans, crushing, roasting and other technical aspects connected with the processing of the beans. Hence, all the employees receive training in all aspects of coffee making, including knowledge about growing of coffee etc. (Starbucks Corporation: Competing in a global market, 2003). Starbucks lays special emphasis on building a unique culture with its people – it believes that its true strength are its employees and therefore, they are given good benefits and remuneration and also given stock options, or ownerships in the Company. (Starbucks Corporation: Competing in a global market, 2003). Starbucks does not offer franchises to anybody nor does it envisage doing franchisee business in the foreseeable future. In the North of America, majority of shops are bought, owned and operated by Starbucks itself; however, in exceptional cases, where real estate ownership may not be forthcoming, such as airport locations, grocery chains and major foodstuff establishments, the Company enters into licentiate agreements with Companies who provide access to these places. However, the shops are manned by Starbucks personnel themselves. (Business opportunities. 2007). The reasons why Starbucks do not franchise is because the franchisees may not be able to maintain the highest standards of quality and service which forms the bulwark of Starbucks’ reputation. However, their competitor, First Cup operates through a chain of franchisees. The main problem with franchisees is that consistency of franchises performance over all the territories have to be maintained, and a greater degree of control has to be established. Franchisee reporting also has to be delineated. The degree of autonomy and chain of command which is available to own staff cannot be extended for the