Case Studies No.1 & No.3: Analysis, Advice, and Solutions

Case Study No.1
 
Margaret owned an antique store that specialized in rare porcelain dolls. When she opened the business in 1989, it was at a shop in an eastern suburb of Melbourne. In 1999 she started to advertise on the Internet and by 2006 the business had grown to the point where she needed help to manage the business. After a family discussion one night at the kitchen table in July 2006, it was agreed that Margaret would probably keep the business going for another couple of years and then retire. Emily, the youngest daughter aged 16 would assist Margaret as long as was needed and in return she would receive any unsold dolls when Margaret retires. When Margaret retired at the end of 2009, she decided that she would give the unsold stock to charity and they could auction them and keep the proceeds.

Advise Emily.


Case Study No. 3

On 1 November, Albatross Sdn Bhd sent a letter to Budgie Sdn Bhd, with whom they had been negotiating, offering them a contract to service all of Albatross’s birdseed processors each month for the next 5 years at a cost of RM100,000.00 per annum. The letter stated that Budgie Sdn Bhd should send their reply by return post. Unfortunately, the letter contained an error in the address and was not delivered to Budgie Sdn Bhd until 6 November. Budgie Sdn Bhd replied at once accepting the offer and posted the acceptance letter at 11.00 am on 6 November. In the meantime, on 4 November, Albatross Sdn Bhd had received an offer from Canary Sdn Bhd to do the servicing work for RM90,000.00 per annum. Albatross Sdn Bhd, having heard nothing from Budgie Sdn Bhd, telephoned Canary Sdn Bhd on 5 November and offered them the contract at RM80,000.00 per annum. Canary Sdn Bhd accepted the offer. Albatross Sdn Bhd sent a fax to Budgie Sdn Bhd on 6 November informing them that the offer of 1 November was withdrawn. This fax was received by Budgie Sdn Bhd’s fax machine at 10.45 am on 6 November, but not read by anyone until 5.00 pm on the same day.

Advise Albatross, Budgie and Canary of their respective positions, course of action, if any and remedies, if any.