Meiller Co

question 238

Multiple Choice

Meiller Co. had a dispute with a Peruvian client over the wording in a contract. The issue ended up in federal court in Miami. The judge ruled that the Spanish version of the contract was controlling. To avoid such problems in the future, what should Meiller do?

• A) fully develop the payment clause in the contract
• B) more carefully study the cultures of the country in which the client is located
• C) have the contract translated into the two languages and include a choice of language clause designating English as the official language
• D) sell the goods using letter of credit and make sure the client meets all requirements of the letter of credit
• E) there is nothing to be done since many contracts must be written in more than one language

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Definitions:

Direct Labor Hours

A measure of the total hours worked by workers who are directly involved in the manufacturing process.

Small Table Lamp Production

The manufacturing process involved in creating small, portable lighting devices designed to stand on tables.

Single Plantwide Rate

An accounting method applying one overhead cost rate to all products, regardless of the department in which they were produced, simplifying the allocation of manufacturing overhead costs.

Painting Department

A specific section within a manufacturing or production facility responsible for the application of paint or coatings to products as part of the finishing process.