discussion - *Are guidelines and chargeback fee clauses...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
*Are guidelines and chargeback fee clauses required by large retailers really negotiable? Chargeback fee is the term that represents the monetary penalties assessed against vendors for non-performance violations. These non-performances violations can include, delivering to the retailer distribution center late, delivery of products that are defective, failure to pass a random inspection, customer returns and so on. Chargeback’s have their place in protecting retailers from non-conforming products that can cost millions of dollars in product returns or wasted advertising dollars for products that aren’t available. I believe the chargeback fee clauses are really negotiable. However, In order to win a contract with a large retailer, many vendors have to offer a substantially lower cost point. To do this, vendors will make a contract with their manufacturer of a certain price based on a certain number of production units. But after negotiating a low price on an item, large retailers frequently substantially slash the number of units they order. This leaves the vendor paying a higher price to their manufacturer for a smaller quantity, eating into their already diminished profitability. | ". Should the doctrine of unconscionability (See Water v. Min, Ltd.) be available as a defense to
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

discussion - *Are guidelines and chargeback fee clauses...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online