Business Ethics and Law
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You own an appliance business in a working class neighborhood that makes most of its sales on credit. What considerations would you take into account in determining whether and when to foreclose or repossess items on which customers have fallen behind in making their payments? Should you be swayed by the personal circumstances of your debtor or look only to protecting your financial interests? For example, would you consider the value of the item to the debtor - such as whether it is a necessity for their life, such as a refrigerator, or a luxury? Would you consider the reason the person had fallen behind - that is whether they had been ill or recently lost a job? Discuss this ethical dilemma using the these steps.
1. Grasp all the available facts.
2. List any information you would like to have but don't an what assumptions you would have made, if any, in resolving the dilemma.
3. Take each person involved in the dilemma and list the concerns they face or might have. Be sure to consider the impact on those not specifically mentioned in the case.
4. Develop a list of resolutions for the problem. Apply various models for reaching this solution. As you apply the various models to the dilemma, you may find additional insights for questions 1, 2 and 3. If the breach has already occurred, consider the possible remedies and developed systemic changes so that such breaches do not occur in the future.
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Solution Summary
The available facts are graphs. The expert lists any information which you would like to have but don't need any assumptions made.
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Introduction
Foreclosure is the situation in which, the owner is unable to make the payment of its assets and property. It can be done through the auction or lender will seize and sell the property. In today's competitive market environment, business firms make foreclosures in order to gain the profits. In this tutorial, considerations in order to determine the reasons of foreclosure have been identified. Along with this, interest of the business firms related to the foreclosure has also been discussed in this tutorial. Further, situation of ethical dilemma and its solution is analyzed.
Foreclosure of Items
Foreclosure is the legal process in which the right of owner on his or her property is terminated due to the default in payment. It has been analyzed that there are various reasons due to which owner is unable to make payment. In the business of working appliances, businessman makes the most of its sales on credit. Some considerations has to be taken into account in order to identify the weather items should be foreclosed or not, when the customers are unable to make the two payments or for 60 days. It has been identified, business firms have to face various risk in doing the business on credit.
For this when the customers also misuse of its products in such a case businessman can do the foreclosure of its products (Lucier, 2012). When the short sale fails than business firm will foreclose the items of its customers. In order to do the foreclosure, lender will give the prior notice to its customers about the issues. After this, they will issue the notice of default. Without the getting the payment, businessman will not be able ...
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