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The PI owners are anticipating that as the business begins and becomes busy, potential contract-related problems and disputes could arise from purchases of paints and supplies from Naturals, and from sales of supplies and paints to local and internet customers. For example, the PI owners know from their prior business experiences, that hassles often develop with manufacturers when a company places an email purchase order to which the manufacturer does not reply, but simply ships nonconforming goods or ships orders too late to meet customer needs. Another problem area is related to internet sales where customers often claim the sales contract is confusing or incomplete sometimes resulting in mistakes in orders and cancellations. These problems can be time-consuming, detrimental to the bottom line, and can create damaging publicity and a negative image for any business. Pat and Gale, the lead consultants working with the PI owners, and you, along with the PI owners, Jo, Maddy, and Taylor have discussed these problems and the need to minimize disputes and liabilities for PI arising from its contract agreements. After several meetings, Pat and Gale ask you to develop sample form contracts designed to minimize contract sales disputes and possible liabilities for PI. Instructions There are two parts to this project. In the first part, you will create two (2) sample contracts. In the second part, you will write a brief memorandum. Part I Create the following two (2) sample contracts for PI that are all consistent with UCC rules regarding sales. A. Create a standard form sales contract to be used to purchase an order of paint from Naturals. B. Develop a standard e-contract form for internet sales of paint sold by PI to internet customers; include shipping policies and procedures. (PI will be reselling paint it purchases from Naturals via the internet.) DO NOT use standard form contracts from the internet; this will be obvious and will not receive credit. Part II: Write a brief memorandum addressed to the PI owners. Write in depth, comprehensive analysis and explanations to support conclusions. Explain the following: Analyze and discuss how the standard form sales contract (created in Part 1. A. above) for purchase of paint from Naturals will help prevent or minimize contract disputes and possible liabilities. Analyze and discuss how the standard form e-contract (created in Part 1. B. above) for internet sales of PI paint will help prevent or minimize contract disputes and possible liabilities and losses. Format for Report Create a Word or Rich Text Format (RTF) document Double-spaced, 12-point font, Arial or Times New Roman No page requirement Include title page with your name, course/section number Use in text citations Include a References list of cited resources Write clearly and concisely. Use the given scenario and facts to create the sample contracts; do not use contract forms from the internet – that will be obvious and may result in grade penalties. Label each part as follows: Part I A. B. Part II A. B. Review the Contracts and Memorandum Thoroughly read the contract and memorandum to ensure all required elements are present. Use the grading rubric to ensure that you gain the most points possible for this assignment.
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