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BUL3130
Sterling Inc. vs NoBugs Corporation
Sterling, Inc. had gained a high reputation in the market by establishing a strategic business relationship with NoBugs Corporation. Its state-of-the-art computer manufacturing business has been highly supported by the high quality microchips of the NoBugs. As NoBugs was the only supplier who was able to meet with the Sterling’s high specifications, thus both of the companies remain in contract for more than ten years. Mutually agreed business terms proved to be rewarding for both of them, where each has earned revenue with attractive rate of return. Sterling Inc. and NoBugs Corporation, both has agreed to enter into contract, on mutually beneficial business terms, where NoBugs was responsible for providing high quality microchips, with no defects and Sterling, Inc. would help NoBugs in achieving high business growth. Overall business of both the companies were running smoothly from past ten years, but Sterling’s business started facing trouble because of the growing cases of explosion in the computers manufactured by Sterling Inc. A thorough investigation of the cases has revealed that defect was not in computer manufacturing process of the Sterling, but were from the microchips manufactured by the NoBugs Corporation, which were supplied to Sterling Inc. It has been found in investigations that due to an inappropriate production condition, such as the miscalibration of NoBugs’s encoding equipment, the microchips produced by NoBugs remained below standard speculations. Due to the inefficiency or defectiveness of the microchips, computers manufactured by Sterling started exploding after little use. Due to uncertain explosion cases Sterling Inc. started losing its name and revenue earning opportunities, which generated huge financial losses for the Sterling Inc, in terms of business opportunity loss, compensation to customers (victims of explosion), etc. After acknowledging the production fault, NoBugs has reworked the

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