Question

In: Operations Management

JunkCo is a electronics wholesaler. One of their best customers is SoSo Buys, a big blue...

JunkCo is a electronics wholesaler. One of their best customers is SoSo Buys, a big blue box electronics retailer. Today, SoSo Buys calls JunkCo and orders 500 of the new XL1 tablets. JunkCo, says: "no problem, we will ship them out tonight." When JunkCo goes to their warehouse to fill the order, oops, there is a problem: JunkCo only has 450 of the XL1's in stock. To keep SoSoBuys happy, JunkCo decides to complete the order with 50 of the next better tablets, the XL2, but only charge SoSoBuys the price of the XL1. Discuss the legal implications of JunkCo's actions. Did JunkCo breach its contract with SoSoBuys? If so, what amount of damages should SoSoBuys be entitled? Has SoSoBuys actually been injured?

Solutions

Expert Solution

The legal implications of JunkCo's actions are that SoSoBuys can sue for the damage incurred resulting from dispatching the inaccurate product that it was promised.

Yes, JunkCo breached its contract with SoSoBuys so the sales agreement was made for the XL1. product but the seller send XL2 in place of XL1 that is the mismatched product than the agreed product

The customer has two option, in this case, first, the customer can retain all the delivery of the XL2 product and pay the bills as charged at the price of XL1, the second option is that the customer can return al the product to the seller, buy these products from any other supplier and if there is any price difference then the customer can ask for the compensation of this price difference and along with the processing fee if any.

Yes, there is an injury to SoSoBuys as the company received the incorrect product that can hamper its business interests and can result in paiying more oney to other supplier to have a similar product


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