Upon Graduation from College,Martine Decided to Go into the Information

question 51

Essay

Upon graduation from college,Martine decided to go into the information business.His first venture was a fee-based daily electronic newsletter for online stock traders.Given the time-sensitive nature of the information,Martine's terms of use promised to deliver the newsletter every business day,no later than 9:00 am Eastern Standard Time (EST).The newsletter was doing fairly well until one day at 8:42 am EST,Martine spilled Orange Crush on his notebook computer right as he clicked to send the newsletter to the subscriber list.After Martine experienced a hardware malfunction and lost a key piece of software and a portion of his address list,the newsletter was sent to some subscribers but not all.Because Martine's service was down for the rest of the day,those who didn't receive the newsletter right when it was sent,never did receive the news that day.Martine had no way to determine who received and who did not receive the newsletter.Consequently,several day traders demanded a refund for services not rendered,while others decided to seek damages for lost opportunities.Martine is seeking your advice.Outline the issues involved in this case and advise Martine on how he can prevent future disputes,given the nature of his business.

---

Definitions:

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Installment Accounts Receivable

Amounts owed by customers for purchases made on credit that are to be paid in regular, periodic installments.

Non-current Asset

An asset that is not expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Promissory Note

A written promise to pay a specified amount of money to a certain entity on demand or at a fixed or determinable future time.