Back to School Offer

Get 20% of Your First Order amount back in Reward Credits!

Get 20% of Your First Orderback in Rewards

All papers examples
Get a Free E-Book! ($50 Value)
HIRE A WRITER!
Paper Types
Disciplines
Get a Free E-Book! ($50 Value)

Legal Ethical and Global Environment, Case Study Example

Pages: 2

Words: 559

Case Study

Are guidelines and chargeback fee clauses required by large retailers really negotiable?

The guidelines and chargeback fee clauses required by the large retailers are only negotiable if the vendors comply with all the stated requirements. These requirements mainly touch on logistical issues which range from shipping and packing guidelines, routing instructions, and paperwork documentation. However, the fee charged by large retailers for failing to follow the guidelines, questions whether they are really negotiable. For instance, in the case scenario where a vendor was charged $ 400 for late delivery of goods worth $ 500 indicates that the large scale retailers are mainly interested in exploiting small vendors. In addition to this, small scale vendors have to hire an extra workforce to perform special packaging.  The striking issue is that in such cases, chargeback may still prevail unless the small scale retailers provide proof of compliance. These instances therefore question whether the guidelines and chargeback required by the large retailers are really negotiable.

Should the doctrine of unconscionability be available as a defense to small suppliers challenging onerous performance requirements?

Drawing from the conditions of the transaction in the case, the doctrine of unconscionability should therefore be available as the defense to the small suppliers.  In comparison to the stated case, the large scale retailers are very oppressive and also take the advantage of economic disparity between them and the scale retailers. The large scale retailers tend to allocate all the shipment and delivery risk to the small scale retailers due to their strong bargaining power. This is evidenced a situation whereby a vendor is charged an exaggerated fine of $ 400 for goods worth $ 500.  Other reasons which call for the application of the doctrine of unconscionability include; the large scale retailers knowingly exploit small scale retailers, there is presence of high pressure on the small scale vendors to comply with the logistical requirements and finally, there is great inequality in consideration.

Is it ethical for large retailers to impose “take it or leave it” clauses on small suppliers? Should courts enforce contract provisions that were imposed by economic power rather than crafted by negotiation?

The phrase “take it or leave it” as implied in the case, tends to surpass ethical requirements given the nature of transaction between the large scale retailers and the small suppliers. In this situation, the small suppliers have no other choice apart from what is being offered by the large scale suppliers. Moreover, there are no other means of shipment that can be used by the small scale suppliers which can hedge them from intentional exploitation of the large scale suppliers. This therefore forces them to adhere to the requirements laid down by the large suppliers and hence ruling out the subject of ethics. However, this does not mean that the courts cannot enforce contract provisions that are imposed by economic power rather than negotiation. The element of unconscionability still prevails in such contracts, for instance in the case scenario, there is gross disparity  practiced by the large scale suppliers who rely on their economic power to take advantage of the small vendors and thus pass all the risk of shipment and delivery to them. The large scale suppliers do not provide opportunity to the small vendors to negotiate their interests. These conditions therefore provide the space for small vendors to seek legal intervention from the courts.

Time is precious

Time is precious

don’t waste it!

Get instant essay
writing help!
Get instant essay writing help!
Plagiarism-free guarantee

Plagiarism-free
guarantee

Privacy guarantee

Privacy
guarantee

Secure checkout

Secure
checkout

Money back guarantee

Money back
guarantee

Related Case Study Samples & Examples

Supreme Court’s Case of Gideon v. Wainwright, Case Study Example

In the case of Gideon v. Wainwright held in 1963, Gideon, the petitioner, was accused in a Florida state court of a major crime for [...]

Pages: 1

Words: 263

Case Study

O’Henry’s Data Services Balance Sheet, Case Study Example

When doing O’Henry’s Data Services balance sheet adjustment, the following entries are made:   Debit Credit Accounts receivable 2,100   Service revenue   2,100 Accounts [...]

Pages: 1

Words: 217

Case Study

Barclays and the Libor Scanda, Case Study Example

The Libor scandal unfortunately caused some parties to be hurt. Many investors were hurt. Of course during the scandal, the perpetrators benefited from the money [...]

Pages: 1

Words: 372

Case Study

Staying on Target, Case Study Example

In the recent years, Target has performed highly with respect to the firm’s integrated marketing communications strategy. In the physical stores, Target utilizes shelves that [...]

Pages: 2

Words: 649

Case Study

The World of Work: Industrial Society and Human Relations, Case Study Example

The party with stronger bargaining power in the contract is the company for which the employee is working for. The consideration over this matter is [...]

Pages: 2

Words: 654

Case Study

Integrated Talent Management at Aetna, Case Study Example

Aetna is a leader in the healthcare market, employing over 35,000 people. The company found that they were losing more than $1 million daily due [...]

Pages: 8

Words: 2201

Case Study

Supreme Court’s Case of Gideon v. Wainwright, Case Study Example

In the case of Gideon v. Wainwright held in 1963, Gideon, the petitioner, was accused in a Florida state court of a major crime for [...]

Pages: 1

Words: 263

Case Study

O’Henry’s Data Services Balance Sheet, Case Study Example

When doing O’Henry’s Data Services balance sheet adjustment, the following entries are made:   Debit Credit Accounts receivable 2,100   Service revenue   2,100 Accounts [...]

Pages: 1

Words: 217

Case Study

Barclays and the Libor Scanda, Case Study Example

The Libor scandal unfortunately caused some parties to be hurt. Many investors were hurt. Of course during the scandal, the perpetrators benefited from the money [...]

Pages: 1

Words: 372

Case Study

Staying on Target, Case Study Example

In the recent years, Target has performed highly with respect to the firm’s integrated marketing communications strategy. In the physical stores, Target utilizes shelves that [...]

Pages: 2

Words: 649

Case Study

The World of Work: Industrial Society and Human Relations, Case Study Example

The party with stronger bargaining power in the contract is the company for which the employee is working for. The consideration over this matter is [...]

Pages: 2

Words: 654

Case Study

Integrated Talent Management at Aetna, Case Study Example

Aetna is a leader in the healthcare market, employing over 35,000 people. The company found that they were losing more than $1 million daily due [...]

Pages: 8

Words: 2201

Case Study

Get a Free E-Book ($50 in value)

Get a Free E-Book

How To Write The Best Essay Ever!

How To Write The Best Essay Ever!