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A salesperson who sells commercial machinery to assembly companies that require large machines to make their car parts that they sell to automotive companies is talking to manufacturing company representatives who are interest in purchasing 5 large assembly machines. The machines sell for $10,000 each and are necessary for companies that make parts. The salesperson, Sam, tells the manufacturing company managers that the machines have a new high-speed motor that can make parts in half the rime. The management of American Manufacturing Company (AMC) feels this is very important and would help cut down on costs at the company. The management agrees to purchase 5 high-speed machines for a total of $50,000, Once the machines are delivered, the management realizes that the machines do not produce double the parts, and de not have the high-speed motors as the salesperson stated.

A salesperson who sells commercial machinery to assembly companies that require large machines to make their car parts that they sell to automotive companies is talking to manufacturing company representatives who are interest in purchasing 5 large assembly machines. The machines sell for $10,000 each and are necessary for companies that make parts. The salesperson, Sam, tells the manufacturing company managers that the machines have a new high-speed motor that can make parts in half the rime. The management of American Manufacturing Company (AMC) feels this is very important and would help cut down on costs at the company. The management agrees to purchase 5 high-speed machines for a total of $50,000, Once the machines are delivered, the management realizes that the machines do not produce double the parts, and de not have the high-speed motors as the salesperson stated.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 26E: Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other...
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A salesperson who sells commercial machinery to assembly companies that require large machines to make their car parts that they sell to automotive companies is talking to manufacturing company representatives who are interest in purchasing 5 large assembly machines. The machines sell for $10,000 each and are necessary for companies that make parts. The salesperson, Sam, tells the manufacturing company managers that the machines have a new high-speed motor that can make parts in half the time. The management of American Manufacturing Company (AMC) feels this is very important and would help cut down on costs at the company. The management agrees to purchase 5 high-speed machines for a total of $50,000. Önce the machines are delivered, the management realizes that the machines do not produce double the parts, and do not have the high-speed motors as the salesperson stated. What are the best legal arguments that the management can make to challenge the purchase agreement on the 5 machines? explain in detail what legal claims the management company could raise against the machine supplier?
Transcribed Image Text:A salesperson who sells commercial machinery to assembly companies that require large machines to make their car parts that they sell to automotive companies is talking to manufacturing company representatives who are interest in purchasing 5 large assembly machines. The machines sell for $10,000 each and are necessary for companies that make parts. The salesperson, Sam, tells the manufacturing company managers that the machines have a new high-speed motor that can make parts in half the time. The management of American Manufacturing Company (AMC) feels this is very important and would help cut down on costs at the company. The management agrees to purchase 5 high-speed machines for a total of $50,000. Önce the machines are delivered, the management realizes that the machines do not produce double the parts, and do not have the high-speed motors as the salesperson stated. What are the best legal arguments that the management can make to challenge the purchase agreement on the 5 machines? explain in detail what legal claims the management company could raise against the machine supplier?
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