Sam Oakes runs a sole proprietorship known as "Oaks by Oakes." Sam is a man in his late fifties who for a number of years has produced turned oak spindles for staircases. A number of people had approached him to do oak baseboard and trim for custom homes, and he decided to enter this field as well.
Sam spoke to his friend George who produced this line of products in pine and asked him what to do about equipment. George told him Eric of "Eric's Tool Shop" had sold him a Model SS90 table router made by Carsoncraft Tools, as being "just the ticket for baseboard and trim."
Sam approached Eric, told him he had spoken with George "about the SS90," and told him that he was interested in making baseboard and trim. Eric said he remembered a sale to George a year ago and said "if you want to do up baseboard and trim, the 90 series is the best on the market. I hear George does about 5,000 linear feet a year. Would you do more?" Sam said no, that he would produce only about 4,000 linear feet of trim a year. "Then this will do you fine," said Eric. The shop phone rang, and while Eric was on the line, Sam wrote out a company cheque in the amount on the tag. Eric returned, and Sam handed him the cheque. Eric looked at the amount and pocketed it. He said, "I can deliver to you by the end of the month." "Done deal then," said Sam, and he left.
Sam immediately entered into a contract to produce oak trim over the course of the month to follow delivery of his router. The router was delivered on time, and Sam began work. The machine laboured through the wood, but progressively slowed. Suddenly, smoke poured out of the motor, and the machine quit working altogether.
Sam complained to Eric. Eric was astonished that Sam was using oak stock to make the baseboard and trim. "Nobody makes that anymore. I assumed when you said you spoke to George that you were going to use pine. The SS90 is for Soft Stock, if you were going to use hardwoods, you would need the HS90. I will go to bat for you and replace it with an HS machine and see if I can get credit from the manufacturer. HS machines are special order items though, and they cost more. If you pay the difference on it, I will put in the order. It should arrive within a couple of months."
Sam protested, "If I don't have the trim done in two weeks, my purchaser will sue me because the homes he is building won't be finished on time."
Eric: "Look, I'm being more than fair, you asked for that machine, and then you wrecked it. There's nothing more I can do. Do you want the HS or not?"
Advise the parties and render a decision.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q35: Domenic and Ben Ltd. has a standard
Q36: Sunnil agrees to sell the quilt she
Q37: Baker agreed to purchase a set of
Q38: Semple agreed to purchase a quantity of
Q39: Baker agreed to purchase a set of
Q40: Business transactions have been a process which
Q41: Doug and Bonnie Jackson built an addition
Q42: Andy orders a meal in a restaurant.
Q43: Mrs. Sydor took her car to National
Q44: Donald is the owner of a recently
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents