Question: You are the purchasing agent for a medium-sized web-based sales company in Ithaca, NY, Sally's Sales. Your company is planning to purchase $30,000 in new
You are the purchasing agent for a medium-sized web-based sales company in Ithaca, NY, Sally's Sales. Your company is planning to purchase $30,000 in new software to run its website from which it conducts 90% of your sales from a company based in California, which has significant sales nationally, Sol's Software. They do not have an office in New York, nor any support office in the region. The principle benefit to your company is their low price. There is similar software available locally for 30% more, initially. Sol's standard form contract contains choice of law and choice of forum clauses (both California) , and by signing your company waives its rights to sue in New York or any other states under any state's long-arm statute. In addition, damages are limited to the purchase price. Consequential damages, such as lost sales, are specifically precluded by the language of the form contract proposed by Sol's. What steps do you now take for your company?
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