Frank is the receiving dock supervisor for Cabinet Co., a company that manufactu

Question

Frank is the receiving dock supervisor for Cabinet Co., a company that manufactures metal storage cabinets. His job is to supervise the inspection, and stocking of components and materials used in the manufacture of the cabinets as they are delivered; and to so notify the accounting department so invoices can be timely paid. On June 1, the company received a shipment of casters used in the manufacture of rolling cabinets. This new shipment would not be needed for three weeks as there were plenty of casters located on the assembly line. The storage facilities where the casters would normally be placed were under renovation, and there would be no space to store this latest shipment of casters until June 20. Frank decided to leave the unopened boxes of casters in a secure and covered corner of the receiving dock. He did, however, notify the accounting department that the casters had been received. The accounting department paid the $8,000.00 invoice in time to earn the discount if paid within ten days. On June 20 Frank had his workers open the boxes of casters to inspect then and place them in the appropriate space in the storage facility. Upon inspection it was determined that nearly all of the casters were defective and unusable. This caused the company to default on several contracts for rolling cabinets as it ran out of casters before it could secure replacements for the defective ones. Cabinet Co. was able to replace the casters at a 15% increase in cost.

*******Discuss Cabinet Co.'s remedies, duties and obligations with respect to the casters.

Explanation / Answer

As a consumer ,the cabinet co. is responsible for noticing if there is a problem or fault with something it have bought, and it must act quickly to tell the seller that it has found this problem. It depends on for how many days are the return policy of the seller is valid. If the company is returning the faulty goods within that period then it has the right to get new goods in return of faulty goods, but after that those faulty goods are a waste for the company. The company cannot hold the seller liable for such. The company has to fulfill its demand of casters at the new prevailing price

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