Reference no: EM131767711

Assume that one of your employees, Homer, on his first day of work misreads your price list for goods/services and charges Marge, a client/customer, $14 instead of $1400. However, Marge is a regular customer/client and should know that $14 for the goods/services is not a realistic price. Marge pays $14 and she leaves with the goods and/or the services performed. Marge is a top-earning, local real estate agent and Vice-President of the local chamber of commerce. You discover the mistake the next day and are concerned that you will not be able pay your bills this month. As a start-up business, you have a very thin margin and some months you are just barely able to pay your expenses, including your employees, vendors, rent, utilities, and taxes.

A. You are considering calling Marge and explaining the mistake. Are there any contract theories that might help you in your discussion with your client/customer? Explain

B. Despite your best argument, Marge refuses to pay the difference. You are considering suing her for $1386. You are fairly confident you could win in court based on the law. But, you are concerned about the damage she could cause your business through her connections. Use the stakeholder approach to help you decide whether to sue Marge. Identify at least two stakeholders that might be impacted by your decision to sue or not and explain how they might be impacted. Provide the decision you reach and why. From what you have learned this semester, do you see any other possibilities? Explain.