CIC reinsures extended warranty contracts with TPI sold by CC‚ is it appropriate for CC to recognize commission revenue at the time of sale of the extended warranty contracts? I believe you really have to determine who the true obligator is‚ whether it is still the third party insurer or if it would now be Crazy Computers because of having a wholly owned subsidiary that is reinsuring warranties sold by Crazy Computers. Since customers have the option to buy the warranty from Crazy Computers (CC)
Premium Contract Contract law Subsidiary
Which of the three approaches to accounting for extended warranty and service contracts is most consistent with the actual substance of a sales transaction involving equipment and an extended warranty contract? Explain your selection and your reasoning fully. Circuit City should go with the Approach 3: Partial Revenue Recognition. At the beginning of the article‚ it shows that Circuit City believed that the revenue from sales of extended warranty contracts would most closely matched costs under the
Premium Warranty Contract law Extended warranty
opera singer for three months. She became ill five days before the opening night and was not able to perform the first four nights. Spiers then replaced her with another opera singer. Warranties Warranties are minor terms of a contract which are not central to the existence of the contract. A breach of warranty is usually not a valid reason for voiding a contract but it entitles the aggrieved party to claim damages but can not end the contract. Case example: Schuler v Wickman Tools In this
Premium Contract law Contract Breach of contract
the Barstow Project: The four alternative course of action available to PVT a) Offer to extend the original warranty at internal cost from 10 to 20 years In the first scenario PVT would extend the product warranty to 20 years‚ Solenergy would contractually prepay the warranty premium annually at the rate of 18% of the purchase price of each inverter. PVT would perform warranty services as necessary throughout the year and submit an invoice monthly of actual internal costs for parts‚ labor
Premium Warranty Marketing Term
Term Proposal When concerning ethical behavior‚ ethics can also imply with fairness. Companies that show fairness and justice tend to practice ethical behavior. However‚ there are many differences we think are justifiable for treating people differently. For example‚ an organization may think it is fair to terminate any employee over excessive tardiness or promote an employee for exceeding the expectations of his or her job performance. On the other hand‚ there are also reasonable criteria that
Premium Ethics Business ethics Morality
Plaintiff’s expressed warranty claim is unusual and likely does not meet the required elements for such a claim under Iowa law. No Iowa court appears to have dealt with a seller’s promise to “make it right” after the sale had occurred. Furthermore‚ Iowa courts have not yet addressed a post-sale express warranty claim. Therefore‚ there is not much direct precedent on this issue. Nevertheless‚ it does not appear the Plaintiff’s claim meets the required elements of an express warranty claim. A plaintiff
Premium Audit Financial statements Contract
power: enumerated‚ implied‚ inherent‚ and prohibited. Enumerated powers are powers given to Congress by the United States Constitution. The creators of the constitution wanted to be sure that the new federal government would not be over using their powers to oppress the people‚ and be like the group they left. Implied powers are often considered to be the “necessary and proper” clauses that congress use to pass laws. Implied powers are not written on paper‚ but they are just that‚ implied because similar
Premium United States Constitution Separation of powers United States
Motivation is the process by which individuals are activated into putting an effort into achieving goals. In order to motivate employees effectively‚ three points needed to be aware: 1. Amount of effort: The more employees are motivated‚ the more effort they will put in work. 2. Company goals: Have a clear goal. If the employees’ efforts are not directed towards the goals‚ the company cannot benefit from their motivation to work. 3. Employees’ needs: Provide something employee needed in order
Premium Motivation
Holder in due course the holder must not have notice that instrument contains any fraud or forgery or is subject to any claim or defense. The note was not forged however it was subject to a defense. This defense was a breach of warranty‚ Due to this breach of warranty Elmer sufferd $10‚000 in damages. This gives Elmer the right of claim and recoupment. Claim and recouoment allows the maker of the note to reduce the amount owed by to the holder.the amount of damages in a claim rising from the
Premium Contract law Payment Economics terminology
who is employed by the principal to do certain act for him to represent him in dealings with 3rd party. Principal is a person who authorizes the agent to act on behalf of him. There are five formation of agency‚ which is by express appointment‚ by implied appointment‚ by ratification‚ by necessity and by the doctrine of estoppel or ‘holding out’. Firstly is formation agency by necessity. Section 142 stated that “An agent has authority‚ in an emergency; to do all such acts for the purpose of protecting
Premium Partnership Contract Defendant