Analysis of Issue On what basis did Medicis initially justify the use of replacement cost to estimate returns? Why is it valid or invalid? Medicis justified the use of replacement to estimate returns using ASC 605-15-15-2 (Revenue Recognition - Products – Scope and Scope Exceptions) which states including: 15-2 (a). [E]xchanges by ultimate customers of one item for another of the same kind, quality, and price (for example, one color or size for another) are not considered returns for purposes of this Subtopic. E&Y reasoned this as it creates an exception to the general rule of reserving for expected future product returns at the gross sales price and deferring the recognition of an equal amount of revenue.
Stein should sue. Alternately, if Stein wants to sue Gortino for fraud to cancel the sale or come up with a different settlement, she can do that. Discussion 2: How does this doctrine act as an exception to the elements and requirements of a contract? This doctrine can act as an exception because, according to Reinstatement Section 90, the promise doesn't have to be "so comprehensive in scope as to meet the requirements of an offer that would create a binding contract if accepted by the promisee" ("Hoffman v. Red," 1967). Also, the promissor has to expect that, upon the promise, it will induce action by the promisee.
Force majeure clause is stipulated in the contract due to force majeure, such as a party is unable to perform the contract in whole or in part of its obligations, waive all or part of the responsibility. The other party shall not claim damages. Therefore, the force majeure clause is a disclaimer. The train wreck is unforeseeable. Q: b.
The reversal of the purchase order is made before shipment within the merchandise. Therefore, it is valid on the part of Gantos; the buyers behalf ( Mallor, et al.,2007). Chapter 16 Problem 7 Page 433 What result? It is obvious that Dyer endorsed the paper contract that demonstrates with the aim of no taxes had been added into the selling cost (Mallor, et al.,2007). So, then this means that Dyer needs to be alert of the sales tax.
If a situation should occur then the company could be covered by t the Conflict of laws which has three branches , Jurisdiction whether the forum court has the power to resolve the dispute at hand, Choice of law the law which is being applied to resolve the dispute, and Foreign judgments the ability to recognize and enforce a judgment from an external forum within the jurisdiction of the adjudicating forum. When a company enters into a contract with another company overseas the contract should be clear of which area their conflicts will be solved. Most often it is more cost effective to leave these conflicts to arbitration, more so if the company is not a part of any international trade groups. Foreign judgments can also be a great tool if they are on a neutral ground. Either foreign judgments or arbitration must have a binding clause in the contract to
Jones purchase the stock of Smithon outright leaving Smithon intact? The stock should not be purchase by Mr. Jones. Mr. Jones acquiring the assets, liabilities and also would inherit the contractual obligations of the selling corporation, would, be the results of the purchase. In lay terms, he has bought the existing Smithon Corporation and he is responsible of ensuring daily operations run efficiently but the tax aspect of acquisition he is responsible for existing and any future tax liabilities that the selling corporation had. It would be my advice for Mr. Jones to not buy the stock because of the liability of current and future tax obligations which Mr. Jones would incur from the purchase of the stock.
Armstrong’s failures to meet their obligation gives GCI three options: they may reject the entire shipment of goods, accept the shipment of goods as is, or accept any number of commercial units and reject the rest of the goods, (Melvin 2011, pg. 192). One right that is available to Armstrong is referred to as the cure. The cure is the UCC’s way of promoting the completion of an original contract. It would allow Armstrong (the seller) the right or opportunity to repair or replace any goods that the buyer (GCI) has rejected as long as the time period for performance has not
Any time an arguer intentionally leaves a premise or conclusion unstated, it is safe to assume that the omission was intended to conceal a weak or questionable step in the argument. Answer: false Reason: just sometime the missing statement is something so obvious and familiar that it would be tedious to state it explicitly. 4. When an argument is standardized, the conclusion is placed above the premises. Answer: false Reason: When an argument is standardized, the conclusion is placed under the premises.
That is, if one party has a reasonable belief the other may fail to perform its part of the bargain, it can demand adequate assurance of performance in writing from the other party” (Broucher, 1958). There are a few different offers or alternatives that the Uniform Commercial Code allows when the performance of an agreement has not taken place or when specific party of the agreement refuses to honor their obligations that were stated. When it comes to the party that is not refusing the agreement they can wait for performance for a specific time period that is deemed reasonable, they can also go on with acting as if the agreement was breached, or they can just suspend their performance. In conclusion, the Uniform Commercial Code and the main items and concepts that were discussed are a direct representation that should be followed in business practices. The main history of the Uniform Commercial Code, the parties and types of contracts that are or may be covered by the Uniform Commercial Code were discussed within this paper, and the main current uses, As any business person should be aware of their intended agreement with a specific party they should also be familiar and aware of all items that are included within a code for their specific trade and
Negatives in the equation are costs involved, which may be seen as time, energy, money and so on. Benefits or things that a person gets out of any relationship may involve friendship, amusement, social support, companionship and so on. The value of any relationship according to SET is essentially subtracting the costs from the benefits in determining if the interaction is positive or negative. In looking at SET we must consider several basic tenets which are that there are negotiated rules and norms of exchange that are expected to be abided by. The most salient of these rules is that of reciprocity or repayment in kind.