Legal Question in Business Law in Pennsylvania

Collecting on order returned with no defects

We are a small manufacturing business who produces parts for printing machinery. A customer submitted an order for our product with a po number. These were to be used in a new machine to be purchased, (Not from us), but they decided not to buy machine. Now they now refuse to pay us and are returning our product requesting full credit. We cannot resale these and we paid our supplier for them. Can we sue or collect 100% even though they returned the items more than 4 months after the order was received? We have a sizable investment in this transaction with no possible means of resale or return to our supplier. Our invoices state they have 8 days once received to inspect and return if manufacturing defect. The reason they did't buy machine had nothing to do with us, and our product cannot be used in any other machine. This is why we cannot resale to anyone else. No one else has this machine in our industry. It was being built exclusively for our customer. Manufacturer of machine will not purchase these parts from us at this time. What recourse do we have?


Asked on 11/11/08, 2:21 pm

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Collecting on order returned with no defects

You asked about recourse for a client that improperly returns items.

This problem is governed by fairly well developed law. From the facts that you have provided it is pretty clear that you have a good claim. The question whether the cost to collect is worth the effort.

You should consult with an attorney to proceed on the matter.

Actually, you should already have an attorney that you could have consulted about this matter. Businesses of any size need to have a developed relationship with an attorney that they can call any time they have a question. An attorney is as necessary to any business as a bookkeeper or accountant. A good relationship should help you do business more effectively.

Regards,

Roger

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Answered on 11/12/08, 12:38 am


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