Posts

Showing posts from March, 2011

Protecting Yourself in the Face of Bankrupt Customers

Knowing your rights when it comes to dealing with bankrupt customers has become crucial for many business owners in recent times in getting paid for goods and services. Understanding the basics of “reclamation rights” and “critical vendor” status is a good place to start in protecting your business while still moving forward in this economy.

RECLAMATION RIGHTS: defined:

Reclamation permits a vendor to take back a certain amount of goods that it sold to a customer who is unable to pay, either before or after filing for bankruptcy.

Before filing Bankruptcy:

If the customer has not yet filed, the vendor shall look to the Uniform Commercial Code (UCC) for the required reclamation guidelines. The UCC allows for a vendor to reclaim goods bought on credit “while insolvent” if the demand is made within 10 days after the customer received the goods, and is limited to only those goods received during the prior 10 days.

The written demand must be:
• in writing
• identify the specific goods, …

Hot Topics on the Roof

FPL SPONSORED PROGRAM GENERATES LAWSUITS:

Five Hialeah homeowners have sued FPL and a local Broward roofing contractor alleging roof failures and leaks following application of reflective paint to their shingled roofs. The paint was applied as part of a FPL painting program aimed at lowering homeowner’s electrical bills. As part of a FPL sponsored program, over 400,000 homeowners allegedly contracted with roofing contractors to fit their roofs with reflective paint.

An elastomeric paint, approved for use by FPL, has been blamed for the damage. The particular type of paint at issue in the case has been cited by the Asphalt Roofing Manufacturers Association as problematic. Although never recommended or approved by either the Federal Department of Energy or the Asphalt Roofing Manufactures Association, FPL began reimbursing Florida contractors which had painted residential shingle roofs with the paint. In their December 30, 2010 article titled “FPL sued over roof painting program,” the…