An introduction to the critical

role of legal knowledge in

managing credit and collection
processes effectively.

Credit and
Collection: A Legal
Perspective
Understanding these aspects can
safeguard businesses against
financial losses and legal
disputes.
 Brighton Electronics Inc., a seller
of electronic goods,

Jenna Taylor, a customer,

Brighton
Electronics Inc. $15,000 transaction on net 30
vs. Jenna Taylor payment terms,

legal confrontation due to non-

payment.
Facts

Sale of electronic Jenna Taylor did not Brighton Electronics

goods worth $15,000 fulfill the payment due Inc.'s attempts to
on net 30 payment to dissatisfaction with collect the debt were
terms. some of the goods. unsuccessful.
Issues
• Validity of dissatisfaction
claim as a defense for non-
payment.
• Consequences of non-
payment on Brighton
Electronics Inc.'s liquidity.
• Brighton Electronics Inc.'s
legal options for debt
recovery.
Law

• Contract Law: Governing sales agreements

and obligations.
• Debt Collection Practices: Under Provincial
and Federal laws.
• Remedies for Breach of Contract: Legal
actions available to the aggrieved party.
Application

Examination of the contract and Evaluation of the dissatisfaction Legal avenues for Brighton
communication to determine breach. claim in light of the contract's terms. Electronics Inc. to enforce the debt
collection.
Resolution
• Court decision in favor of Brighton Electronics
Inc.
• Discussion of settlement options and their
implications for both parties.
Discussion Questions

1. How do consumer protection laws affect dispute

resolution?

2. What are the ethical considerations in pursuing debt

collection?

3. What could be the long-term effects of legal actions on

business relationships?
Conclusion

• The importance of understanding legal principles

in credit and collection
• Ethical practices and continuous learning to
navigate disputes and maintain healthy business
relationships.