Colonial Traditions, Inc.

copyright 1998
ISBN 0-324-03056-8

Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 5 pages in length and its case teaching package is 8 pages.

Abstract

Alice Borden, sales manager for Colonial Traditions, Inc., must make a recommendation to her new boss and general manager, Phil Rigby, about how to handle the complaint of disgruntled customer Fred Townsend. Townsend has alleged that four of the six pairs of custom window shutters for which he waited six weeks are the "wrong" size. However, Rigy maintained that Townsend signed a sales contract that authorized the manufacture of the exact shutters he received, and the contract clearly specified that custom-made goods are not returnable for credit. Yet upon her investigation, Borden learned that a company employe apparently erred in preparing the sales order signed by the customer.

The case is intended for use chiefly in undergraduate courses in business ethics, business and society, legal environment of business, business law, total quality management, marketing, and sales management. In addition, it can be used in other courses that incorporate an ethics or TQM component such as introductory management and small business management. The case is suited for use in the following topic areas, depending upon the course emphasis and the preference of the instructor: contracts, sales and marketing ethics, managerial ethics, total quality management, and customer service.

Study Questions

1. Evaluate the legal obligations of Colonial Traditions, Inc., to the Townsends in the case. What are the firm's responsibilities and why?
2. Do you believe the firm has any ethical responsibilities to the Townsends? Why or why not?
3. What recommendation do you think Alice Borden should make to Phil Rigby about handling the Townsends' complaint? Explain your response.
4. Focusing on the principles of total quality management (TQM), evaluate the manner in which Colonial Traditions handled its business relationships with the Townsends. What, if anything, might have been handled differently?