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Assignment:
Acorn Oven Manufacturing (AOM) is a family owned business that has been operating for over 150 years in the Canadian market. Many, if not all, of their customers have been doing business with AOM for many years and are like family to the owners. All of AOM current business relationships are longstanding relationships build on trust and therefore, AOM has never seen the need for a contract to manage these relationships. AOM is planning to expand their business into South Korea. The "next generation" of owners are pushing for a contract to be developed that would guide their Korean business relationships, while the "older generation" suggests business can continue to be done on handshakes and promises.
1. Risks - How can the "next generation" convince the "older generation" that a contract is needed to reduce legal risks. What are some of specific legal risks that AOM might encounter?
2. Risk Management - Utilizing a contract, what can be done to reduce those risks (i.e. what specific risks should be covered in the contract and how?
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