On the advice of her lawyer, Isabella Hallberg sends the following letter after the meeting.

The Wendy Rae Body Care Center IN & HAIR CARE PREPARATIONS Margareta Tntz 47 Akersgate Oslo K-117 81 Norway 28 May 19.. WITHOUT PREJUDICE Dear Ms Tntz, Further to our conversation of today's date, I am writing to confirm what was discussed. As I understand it, you have signed contracts with builders for structural repairs to your shop premises. You were required to pay 20% of the contract price of $ 68 000, on signing. This sum was paid out of money lent to you by me on the understanding that it would be spent on converting your stores to Body Care Centers. However, my application for permission to award you a Body Care franchise has been turned down, and these conversions are now not necessary. In the circumstances, I must ask you to repay the full amount within seven days. I hold you liable for the debt in full. Yours truly, Isabella Hallberg 62 KUNSGATAN, S-115 80 STOCKHOLM TEL: + 46 8 555 0000 FAX: + 46 8 555 5137

Œ”1. Notice:Without prejudice: words typed in a letter in order to indicate that nothing written in the letter is legally binding.

‹At 10.30 on June 5, Isabella Hallberg attends an appointment with Franchise Manager, Scott Ringer. After the initial pleasantries, they get down to business. Read the dialogue. 

Ringer Well, what can I do for you?

Halberg I'd like to discuss Margareta Tntz's case with you.

Ringer I thought that might be the reason for your visit.

HallbergI'd like you to reconsider your decision.

RingerI'm afraid that's not possible.

Hallberg I find that very inconsistent — even hypocritical.

RingerI'm sorry you feel that way, but the decision must stand.

Hallberg But why? In our entire PR and in all our literature, we stress our high ethical standards. Everyone knows that the company supports equal opportunities for women — 60% of all our franchisees are women with children. But you won't allow me to offer a franchise to Margareta Tntz. Why? She is just the sort of person the company needs, and just the sort of person who deserves the company's support.

Ringer Yes, I can see that from your point of view my decision must look very inconsistent.

HallbergIt does.

Ringer Is she a friend of yours?

Hallberg No, she's a business contact. I met her when she applied for a franchise. But I like her. And I don't like the way we are treating her.

Ringer I think I'd better explain.

Hallberg I'd appreciate that.

RingerWell, to be honest, when I received your proposal, I smelled a rat. So I made some inquiries. And I discovered that Ms Tntz isn't what she claims to be.

Hallberg What on earth do you mean?

Ringer I'm afraid she misled you. She didn't inherit one pharmacy from her husband. She inherited twenty from her father. Ms Tntz comes from a very wealthy Norwegian family.

HallbergAre you certain about this?

Ringer Absolutely sure. In the last eight years, she has sold 16 stores to pay her debts. At the moment she owes $ 750 000 in back taxes. She owes her suppliers as much again. She is effectively bankrupt. That's why she needs our franchise.

Hallberg Oh my God..

RingerBy the way, have you seen any of her stores?

HallbergNo-o.. I haven't.

RingerThat was a mistake. Apparently, they are in very bad shape, and grossly mismanaged. The fact is that she is not a good business person. And I can tell you that we would not want her as a franchisee, now or ever.

HalbergBut how ...but why were you suspicious?

Ringer An inconsistency in your letter puzzled me. You said that Flavel's products were introduced to the Norwegian market through her stores. I happen to know that Flavel's products are sold exclusively by Mail Order.

Hallberg I've been a complete fool.

Ringer You mustn't blame yourself. We all make mistakes. You're still learning.

HallbergNo, I didn't mean that. The problem is more serious than that.

RingerIn what way?

HallbergI lent her money.

RingerHow much did you lend her?

HallbergSeventy thousand dollars. She said she wanted to do some structural repairs to her premises so that they would be ready to be converted into Body Care Centers. I was so sure that she would be awarded the franchise that I lent her the money.

RingerAnd that's the real reason you're here now.

HallbergYes, it is.

RingerI see...

HallbergI'm afraid I've shown very poor judgment.

Ringer You haven't been very frank either.

HallbergI know.

Ringer Was the money you lent your own money or company money?

HallbergA mixture of both.

RingerYou are aware that's a direct contravention of your agreement with us.

HallbergYes, I am. I suppose you will want to terminate my contract?

RingerThat's Wendy Rae's decision, not mine. We'd better go talk to her.

HallbergYes... I'm sorry, Scott.

RingerI’m sorry, too.

Œ1. What is the reason which caused Body Care to be suspicious of Ms Tntz?

a) Isabella Hallberg was lending Ms Tntz money.

b) Flavel's products were said through mail order.

c) Ms Tntz was making repairs to her shop.

Date: 2016-04-22; view: 823

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