Negotiation Essay

497 words - 2 pages

Position Paper ­ Scott Computers: 
 
1. Introduction: ​
Our company​ cott Computers Inc. is a very large company 
, ​
S
engaged in the manufacturing, selling and leasing of computers and associated 
software. We are involved in a dispute with Rapid Printing, comparatively small 
but highly regarded printing company. 
 
2. Dispute: ​
Our company is involved in a lawsuit filed by Rapid Printing Company 
seeking $5,000,000. In response to Rapid Printing’s response to hold a meeting, 
June Robinson from our company had met Dee Williams from Rapid Printing. In 
course of many meetings, it was brought to our notice that they would need an 
application program. We told them that they could rent our application program 
...view middle of the document...

 The question was 
whose responsibility was it to provide an application software, 
 
3. Issues Involved: ​e never offered our application software in the contract as 
W
they didn’t want to take it since they were developing something inhouse. On the 
other hand, according to them, our salesperson had promised the application 
software, Print­Rite to them in the lease free of cost. We considered meeting our 
obligations as there was nothing mentioned on the contract and demanded 
immediate payments however they refused to pay. Since they failed to make 
payments within 30 days of the date, we immediately asked for the entire amount 
of the 5­year contract and turned over to our legal department to start with the 
proceedings. Before our legal department could act, Rapid Printing brought a 
lawsuit against us claiming that we had breached our contract by promising 
Print­Rite and not delivering it.  
 
4. Quantum: ​
The nature of the legal issues is pretty straight forward. Since we 
haven’t mentioned delivery of Print­Rite on our contract, it doesn’t make sense to 
legally react to the lawsuit. However the business considerations are pretty 
complex. Even if they drop the case against us, they still owe us over $500,000 
Also their financial position is not good.  They might get into bankruptcy unless 
their new system is operational.  

 
5. Proceedings: ​e want to attempt to resolve all disputes short of litigation. Both 
W
the companies are extremely revered in the marketplace and any litigation would 
spoil the reputation to a larger extent. 
 
6. Costs: ​e have to pay our legal department trial costs at a minimum of $50,000 
W
assuming a 2­week trial, billing our firm’s normal rate of $200 per hour of 
partners and $100 per hour of associates.  

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