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K.K. Legume, Incorporated is a reputable and popular sweater manufacturer. Based upon Legume’s reputation and popularity, Arrow Stores, L. L. C. enters into a contract with Legume. The contract is a “requirements” contract, stipulating that Arrow will purchase whatever number of “Arctic Ice” brand 100% wool sweaters it needs for a one-year period, at a “per-unit” price of $12.00. Two developments result in litigation between Legume and Arrow. First, due to an unanticipated sheep shortage, with substantially fewer sheep to shear, the price of wool skyrockets 1,000 percent. Second, due to an unexpected “cold snap,” consumer demand for wool sweaters increases dramatically, resulting in a 500% increase in Arrow’s wool sweater orders to Legume, compared to order averages over the previous ten years (the parties have a long-standing business relationship.) Legume implores Arrow to increase its per-unit purchase price to $36.00, but Arrow refuses to modify the price term stipulated in the contract. When Arrow refuses to pay a higher price for the sweaters, Legume ceases delivery, claiming that it would be bankrupted by continuing to fill Arrow orders; further, Legume claims that based upon the longstanding business relationship between the parties, Arrow has at least an ethical obligation to pay a higher price. Set out the strongest argument for Legume and set out the strongest argument for Arrow. Does Arrow have an ethical obligation to pay a higher price, based upon such an unanticipated change in circumstances?
What led to the development of sanitary landfills? How do sanitary landfills differ from open dumps? Describe how a sanitary landfill is created. How does this type of landfill construction help prevent groundwater contamination, and is it always ..
As the new office manager for the Family Practice Medical Group, you are responsible for establishing policies and procedures for maintaining a safe environment for both the staff and patients. Pick one of the categories and post your plan for safe h..
One of the consequences of the terrorist attack of 9/11 was the passage by Congress of the Patriot Act. From an HR perspective, what has been the impact of the law?
What are the four tests of a resource's ability to generate a sustainable competitive advantage are often referred to as:
What are the objectives, inputs, and outputs of an MRP system? Describe the MRP process, including netting, explosion, lot sizing, and time phasing. Discuss several assumptions of MRP and how they are being relaxed with new technology.
Next, provide an example of how your personality and values have influenced your actions and / or decisions in your current or past organization. Be specific as to the particular action or decision that your personality and values influenced
Discuss the key factors that impact location decisions. As an example, if locating a facility in India, what location decisions would a fast-food chain have to consider as compared to the location decisions of a software company?
Ethical dilemmas are situations that do not seem to present clear choices between right and wrong or good and evil. State whether you agree or disagree with the following statement: Sometimes it is appropriate to lie.
Ace contracted with Jones to do certain remodelling work on the building owned by Jones. Jones supplied the specifications for the work. The contract price was $70,000. After the work was completed, Jones was dissatisfied and had Clay, an expert, com..
A fire destroyed a large percentage of the financial records of the Carter Health System. You have the task of piecing together information to prepare a financial report. You have found the profit margin to be 5.4 percent. If sales were $4 million on..
Increased demand for health care services leads to an increasing need for health care organizations to be cost efficient. What are the factors that impact an organization’s financial viability?
Christine is a member of the management team of a company that, until recently, was extremely profitable; in fact, the management team has regularly received year-end bonuses. What are the main arguments Christine is likely to encounter? That is, wha..
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