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My compaNY in California supplies components to a company in

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Tennessee. We shipped components...
My compaNY in California supplies components to a company in Tennessee. We shipped components to them and they did not finish paying for them according to our P.O. requirements. After they received these components they stated that the components did not meet required specifications and are are demanding that we fix them before making final payment. The issue about not meeting specifications is currently unverified and in dispute as we are investigating the details of it.
Questions:
1. Do we have an obligation legally to give this support to a customer who didn't pay according to the payment plan? Do they have a right to non payment if the P. O. requires full payment and they failed to give it on that schedule.
3.Do we have a right to hold up further shipments if they don't become current first. (We have a shipment that we can send now but they are not paying us on the previous according to the schedule.
*Please ask me any questions that will help to clarify for you to answer.
Submitted: 2 years ago.Category: Legal
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11/11/2015
Lawyer: Ely, Counselor at Law replied 2 years ago
Ely
Ely, Counselor at Law
Category: Legal
Satisfied Customers: 102,694
Experience: Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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Hello and welcome to JustAnswer. Please note:This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

I am sorry to hear about this situation. When you say "provide support," do you mean investigate and possibly replace the components? Or do you mean support for other components/items separate from the shipment?

This is not an answer, but an information request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.

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Customer reply replied 2 years ago
provide support means to investigate and possibly replace or repair components which were shipped. Part of the situation is that they waited a year to discover the problem and then they had a last minute emergency that is asking for immediate solutions. And as a conscientious business person I would see myself doing this. Yet this customer is acting like the large corporation which they are where the person I interface with is not the person who makes the decision. They tend to make demands that serve them selves and not pay attention the details which include both their responsibilities and mine. In this case they didn't pay us in full. Therefore they want me to spend more money when they didn't meet their payment obligations to me. This requires that I come up with other monies in order to go the extra mile with someone who hasn't met their obligations to me.
In this case they received this shipment one year ago and after the year went by they opened it and it didn't fit. My investigations have show to me that there are only some variables to getting things to fit that they haven't fully understood. Their design here is a new design and has some untried practical problems. They have already agreed that the design has to change due to these issues of not fitting. Yet they want me to be the fall guy for everything that went wrong.
Consequently I am the one hit with all the responsibility for things not working. It actually isn't as simple as whether all my components are to all the specs, but what how long do I have any responsibility since they waited so long to find the problem and what other factors that do affect the fitting of the components. And yes there are other factors which their engineers have not addressed in the over all successful working assembling of everything.
My basic questions is whether I have have a clear legal option to walk away and not support them if they remain unreasonable.
I suspect it will come down to a personal decision on their part if it comes to that point to be easy to work with or not.
Lawyer: Ely, Counselor at Law replied 2 years ago

Thank you.

1. Do we have an obligation legally to give this support to a customer who didn't pay according to the payment plan?

First, someone in your situation may wish to check the contract. If the contract states yes, then yes. If the contract states no, then no. If the contract is silent, then it is at one's discretion. However understand the following - that if the components are indeed wrong, then the company would bear the brunt of the liability for sending the wrong components. Therefore, it may be in the company's best interest to check out the matter to see if the components do fit or not.

Do they have a right to non payment if the P. O. requires full payment and they failed to give it on that schedule.

If the components are wrong, then yes. If the components are right, then no.

If the components "kind of" fit, but still end up costing them more, then they have to pay the price minus whatever it would cost them to fix the issue.

As you can see, this may end up in Court if the two parties disagree if the components were right or not.

3.Do we have a right to hold up further shipments if they don't become current first.

The same applies here as in #2. If the components were correct, then yes as it is THEY who are breaching contract. If the components were incorrect, then no, as it was YOUR COMPANY that arguably breached contract.

Everything falls back on whether or not the components were proper, which at this point is ambiguous and they claim they were not, and you claim they were.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

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Lawyer: Ely, Counselor at Law replied 2 years ago

Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question. I am simply touching base. Let me know. Thanks!

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