System of the International Negotiation - Essay Example

Chapter 13 is relevant to the subject matter in question as it addresses the necessities behind good negotiation planning which include preparation, strategizing, and engagement.

B. Fixed-price Contract with Incentives
Chapter 14 talks about the relationship between fixed-price contracts with incentives and that with redetermination. The two are similar except that fixed-price contract with incentives allows cost-savings sharing with the supplier. Redetermination barely allows the buyer and seller to reach a firm price before production. Supplier’s incentive is primly on cost elements to the detriment of quality interest expressed by the client (Ward 2008). Should the supplier manage to demonstrate actual cost savings, usually when it involves high unit costs, the resultant cost savings from the initial cost targets are shared between the buyer and supplier based on a predetermined rate. The fixed-price Contract with Incentives is considered when the two parties won’t agree on an equitable price (Federal Register 1977). Chapter 14 brings out the advantages of fixed-price contracts with incentives over those with redetermination making it relevant to the topic.

2. A. What is the relationship between contract law, the UCC, and commercial law?
When two or more parties get together to do business, they form a contract, some sort of binding legal agreement. Now contract law is a body of law that governs these agreements whether written or oral. On the other hand, commercial law is a body of law that refers to how the business parties or firms get into a contract with one another and execute the contract. Should any problem arise in the process, the commercial law ensures its remedy. Commercial law is majorly tied to laws regarding agencies and contracts. Finally, the Uniform Commercial Code (UCC) is not exactly applicable during a business transaction like the other two but rather it comes in at a later stage. The UCC is a mode statute used to resolve contract disputes that arise from the sale of goods (LaMance 2013).

B. What are the benefits of calculating the total cost of ownership associated with carrying physical inventory?
Calculating the total ownership cost allows prediction and financial management of the entire ownership cost. These calculations could include hoping, storage, and maintenance. The calculations will also enable the business management to set up advertisement costs, staff level, and prices so that the physical inventory can be managed for the sake of the positive flow of the business. Read More