You are one of five owners of Outside Settings (OS), a profitable company that sells outdoor furniture
Question:
You are one of five owners of Outside Settings (OS), a profitable company that sells outdoor furniture from its mega-sized retail store in Florida. OS also sells furniture nationwide to customers through internet sales.
OS buys most of its furniture inventory from U.S. manufacturers. OS also makes and sells a line of custom furniture built to customer's specifications in a woodworking shop next to its retail store.
As sales have increased, OS has encountered more contract-related problems and disputes arising from sales with furniture manufacturers, custom furniture sales, and internet sales. For example, hassles often develop with manufacturers when OS 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. Costly problems also often occur with custom furniture sales when customers cancel orders after the furniture is built leaving OS with goods that are not saleable or must be sold at substantial loss. 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 are time-consuming, detrimental to the bottom line, and can create damaging publicity and a negative image for OS.
You and the other owners have discussed these problems and ways to minimize disputes and potential liabilities for OS arising from its contract agreements.
You agree to develop sample form contracts designed to minimize contract sales disputes and possible liabilities for OS.
Create the following sample contracts for OS that are all consistent with UCC rules regarding sales.
- Develop a standard e-contract form for internet sales of OS furniture that includes shipping policies and procedures.