Position Paper Scott Computers:
Our company cott Computers Inc. is a very large company
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.
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
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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
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.
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
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
assuming a 2week trial, billing our firm’s normal rate of $200 per hour of
partners and $100 per hour of associates.