LAW 531 Week 3 - DQ - 7789

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Assessed question #1:  Select a business contract transaction you are familiar with or can easily research. You may use a transaction occurring in your workplace, or one where you have been a consumer (such as auto insurance, rent or purchase of your residence, or cell phone or computer purchases). What are the elements of the contract (for example the offer or acceptance)? How are the terms of the contract established? What can managers involved in the transaction do to minimize contract risk and maximize contract benefits?

 I have chosen to talk about my lease contract. This lease contract is for the rent of the house I am living right now. The elements of the contract include the rent amount which is $775 dollars, our names, the address, the length of said lease and what does the rent include in this case nothing. The terms of the contract are what the lease holder wants us to comply with. For example he wants us to pay the rent from the day 1-5 of the month, if not we will have to pay a fee of $25 dollars, if we give a bad check we will have to pay a fee of $25 dollars. The contract starts on June 1st, 2009 and ends on May 31st 2010. Some other terms include that we cannot rent the property to another person, we cannot have big pets, and we have to pay our own water and electricity. Also we cannot make changes to the infrastructure. If we do paint we have to paint back to the same color before we move out and if something breaks we have to fix it. If the reparation exceeds $250 then the owner takes care of it.

In this case there are no managers just me and my husband who are the tenants and the owner of the property who prepared the lease. To minimize contract risks we as tenants need to comply with every single terms the owner has established in the contract we have signed. To maximize contract benefits we have to make the most it, enjoy living in the house, try to cut in our expenses to be able to pay on time and save money to eventually buy our own house and not pay to another person just the bank. Also another thing we can do to minimize risk is to keep an eye on our kids not t damage property and if we see something wrong fix it right away. Because the house if big we can maximize benefits by enjoying the space and preparing family activities here.

 

Assessed question #2:  What special issues arise in international business transactions? Identify two such issues and discuss what managers can do to minimize exposure to legal risk and uncertainty associated with these issues.

Usually the issues that come by doing international business transactions include problems with the sales, culture, licenses to export or import goods or even with laws from any of the countries the company is doing business with. Conflicts of law are one of the most common issues that can happen. Different countries have different rules, different regulations. Other issues can be difference in the exchange rate from said countries. I studied in a past course that exchange rates can affect a business transaction in a tremendous way. When the rate changes due to market fluctuations the amount of money you are supposed to pay for a certain service or product can be higher. In some cases you can benefit from this but you have to be prepared for both outcomes.

Solution Description

Assessed question #1:  Select a business contract transaction you are familiar with or can easily research. You may use a transaction occurring in your workplace, or one where you have been a consumer (such as auto insurance, rent or purchase of your residence, or cell phone or computer purchases). What are the elements of the contract (for example the offer or acceptance)? How are the terms of the contract established? What can managers involved in the transaction do to minimize contract risk and maximize contract benefits?