Case Analysis : ' Xyz ' Essay
2. Brief Statement of the Nature and Complexity of the Case. XYZ, Incorporated (“XYZ”) manufactures custom medical devices that are used in delicate surgeries. The devices cost about $95,000.00 apiece and are manufactured to order with very short notice. ABC Corporation (“ABC”) purchases the medical devices from XYZ at wholesale prices and sells them at retail prices to hospitals and surgeons.
On December 15, 2014, ABC received a voice mail from a surgeon requesting a 20” x15” device. ABC, acting through Mr. A, immediately placed an email order with XYZ, requesting that the item be drop-shipped by overnight delivery to the Venice Beach Hospital. ABC, acting through Ms. B, placed the order via voice mail on XYZ’s voice mail system. There is no question that the message was placed on the correct voice mail system. The surgeon then sent an email to Mr. C, of ABC, asking for a 20 x 15 device, and requesting drop shipment to VBH. Surgery was set for the following day and the patient’s condition was critical. ABC forwarded the email to XYZ. ABC’s salesman, Mr. Jones, sent an email to his counterpart at XYZ, Ms. Smith, stating that the device was urgently needed for life-saving surgery the following day.