This week I'm presenting a comprehensive policy that sets for the steps that should be taken by companies and their personnel in selecting vendors and negotiating and consummating contracts for the purchase of goods and services from those vendors. Care in this area is particularly important in trying economic times such as this.
Last week I published a report on the rules and procedures mandated by the Uniform Commercial Code in order for secured parties to create and perfect a security interest in the debtor's deposit accounts. This week I'm presenting a model form of deposit account control agreement that will illustrate how some of the issues can be handled.
A valuable source of collateral for any secured commercial lender is the money in the deposit accounts maintained by the borrower with any bank. This week our report discusses the rules and procedures mandated by the Uniform Commercial Code in order for secured parties to create and perfect a security interest in the debtor's deposit accounts. A form of deposit account control agreement will appear in next week's edition of The Business Counselor Blog.
Risk management is an important topic these days for all businesses and founders and executives need to understand the contractual relationships of their firms and be able to access all necessary records quickly and efficiently. In order to be sure this can be done companies must create and maintain records retention policies and procedures.
Firms that manufacture and sell complimentary, rather than competitive, products and services may wish to join forces to promote each of their products to prospective customers and thus look to increase sales for both products. The parties are not "distributors" for one another. What they do is make sure that when they are selling they are mindful of opportunities to mention the other products. If there is any interest the "lead" will be passed to the sales team of the other party. Of course, the parties can initiate more elaborate collaborative efforts if they wish; however, it is best to start small with a simple strategic alliance agreement. Key issues for such an agreement include designating a contact person on each side to coordinate efforts and making sure that the confidential information and customer lists of both parties are protected.
A company launching a website to serve the needs of a specific set of customers may wish to offer sponsorship opportunities to other businesses that would like to promote complimentary products and services that would be of interest to the target market. For example, a website that is aimed at providing services to entrepreneurs might be of interest to an accounting firm that would like to have high visibility on the site. The arrangement between the parties in this cases takes the form of a sponsorship agreement.
Following extensive debate and a large volume of comments the Federal Trade Commission has issued a revised version of its proposed new rules on regulation of business opportunities. To learn more read the attached summary.