Legal Question in Business Law in Washington
small business
I am a small business and went to a decal company to print 3,000 decals for $.16 each, for a promotion. Found out the promoters would not allow decals and called the decal company and changed order to 1,000 decals. No price was dicussed and he printed decals and gave me an invoice for $.37 per decal. I was astonished at the price and advised will not pay that as I was never told of increase. He is threatening to take me to small claims. Can he do that? their was no verbal contract, no discussion of price increase. And if we go to small claims and loss is it costly (court cost). I have sent several emails to try and negotiate but he is unwilling.
please give me advise.
3 Answers from Attorneys
Re: small business
I suggest you contact Mr. Lind to first try to get this amicably resolved. NanceGroup.com
Re: small business
It's impossible to say who would win but under the facts as you have given them to me, you have a reasonably strong argument. However, I could make a respectable argument for the decal company as well.
Small claims court costs the person who files the claim a fee that varies by county, but is under $30. In addition, there may be a cost for service of process. This varies, but can get into three figures depending on the circumstances. If the plaintiff (the one who files the claim) wins, the other party must reimburse these costs.
Bear in mind, small claims court will also take up time that you could be spending growing your business. And if you lose, a judgment against your business will be a matter of public record.
The reason your argument in this case in not unbreakable is that normal practice in ordering personalized things in volume is that if you reduce the volume, price per item must go up. This is because the manufacturer or printer has fixed set up costs that apply no matter how many you order. To be safe in the future, you should assume that whenever you order an item that is in some way particularly for your business, and cannot be sold to the general market, whether it be business cards, advertising brochures, or t-shirts with your company logo imprinted, the price is based on the assumption of a certain volume, and will likely increase if the volume is reduced.
Re: small business
As a practical matter you should pay your bill and move on. Next time do a better job of investigating the requirements of the promoter and then the price points of printing as any "reasonable" business person would do. Sometimes it is hard to acknowledge our own mistakes. It should not have been astonishing that the price per piece was higher for a significantly lower volume of printing. Anyone who has ever ordered business cards knows this. I don't think that you would find a great deal of sympathy in small claims court. Even if the judge knocks a few dollars off your bill, you will have expended a lot of time and negative energy.
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