Jack,
I agree with your thoughts. One thing to remember is that IF fraud has been
committed, than this becomes a CRIMINAL act. The DA and/or Attorney General
carries a big stick and bankruptcy gives little protection. A criminal fine
and/or possible jail time sometimes convinces the owner to "do the right
thing"
Scott
----- Original Message -----
From: "Jack Hicks" <jackhicks@qwest.net>
To: <towertalk@contesting.com>
Sent: Monday, January 22, 2001 9:42 PM
Subject: [TowerTalk] Re: Set The Record Straight
>
> The complaints with First Call Communications bring to mind situations I
> have seen repeated many times in my contacts with various failing
> business enterprises over the years. The tactic of taking money up front
> and then delaying the payment to the manufacturer (or builder or
> subcontractor...whatever) is characteristic of businesses that are
> technically bankrupt but are continuing on using the "float" all the
> while getting themselves in deeper and deeper financial debt. They use
> the advance money from new sales to pay off the subs or manufacturers
> for previous orders, the advances for which were spent on orders before
> that. Building contractors that aren't making it financially pay off the
> subs on the previous house with the down payment from the next house or
> even two houses down the line.
>
> Very slow paying in business is one of the classic signs of a
> financially failing company. The slower they pay, the worse trouble they
> are probably in. Failure to give refunds may mean First Call doesn't
> have it to give. Can't imagine First Call would accept the bad rap they
> are getting if they were financially sound and could meet their
> financial obligations. In time, the final day of financial reckoning
> comes and someone sues which forces an involuntary bankruptcy. Then all
> "advances" or "refunds due" are probably lost forever. Rarely does an
> unsecured creditor get anything.
>
> The only real defense the consumer has is to recognize the signs of
> impending financial business failure for what they may be. Caveat
> Emptor! Buyer beware! Anyone who gives advance money to any firm
> displaying these characteristics should not be surprised to hear one day
> that the company has gone chapter 13 and that you have lost your money.
> The buyer certainly had plenty of warning. They have only themselves to
> blame.
>
> Best course for new buyers could be to try to strike a purchase direct
> with the manufacturer if he appears to be solid. A responsible
> manufacturer would be likely to dump a financially insolvent distributor
> that is creating much customer ill will. That in itself could
> precipitate a financial collapse.
>
> No point in carping about how bad you have been treated. Wake up and
> smell the coffee.
>
> Jack
> KD7OE
>
>
> --
> FAQ on WWW: http://www.contesting.com/FAQ/towertalk
> Submissions: towertalk@contesting.com
> Administrative requests: towertalk-REQUEST@contesting.com
> Problems: owner-towertalk@contesting.com
>
--
FAQ on WWW: http://www.contesting.com/FAQ/towertalk
Submissions: towertalk@contesting.com
Administrative requests: towertalk-REQUEST@contesting.com
Problems: owner-towertalk@contesting.com
|