Date: May 16, 2008
To: Mr. David Cooper – President/Owner
From: Ben Tuck – General Manager
Subject: Advisory opinion
This responds to your request for an advisory opinion regarding a number of pending legal matters that need immediate advise and action.
PROBLEM 1. CONTRACT
Factual Background: The Hotel entered into a contract with ABC (Suppliers) Ltd. under which we ordered 150 pieces of china crockery. On arrival, approximately a dozen of pieces were damaged and only 120 were sent. I understand that when my predecessor discussed this with ABC, they said that this design was the end of a line and no further matching pieces are available. The balance could be made up with a different design, but at a price of 15% more than the originals.
Based on the information provided and analysis of Consumer Protection Regulations 2000, I concluded that the way ABC is attempting to solve the issue is not appropriate and thus, it should not be accepted since it does not serve the best interests of our organization.
Prior to the conclusion of the contract we were given a description of the main characteristics of the china and the price of the china. ABC knew that one of the main reasons why we entered into the contract with them was precisely the special characteristic of the china crockery’s design and notably, its price. (please see the exchange of e-mails between Julie and ABC (suppliers) Ltd. dated November 12, December 15, 17, 2007)
At any point of our dealings with ABC and until we closed the deal were we ever informed that the design was the end of a line. Under an objective perspective, they were very aware of the likelihood of the Hotel be in need of additional crockery of that same exact design, in the future (our e-mail to Kevin, Sales Department, ABC (Suppliers) Ltd., of January 12, 2008).