The Rinadale Company manufactures and sells very high-quality men’s business suits to major department store chains. To stimulate sales, Rinadale Company offered all new first-time customers a special deal. New customers could purchase up to $100,000 of suits using an open credit line. If the purchaser continues to make timely payments on any subsequent purchases, Rinadale Company defers the original purchase payment due date. If the purchaser fails to make additional purchases within sixty days or timely payments, the amount of the original purchase is immediately due along with interest of the prime rate plus 2.5% from the date of the original sale.
Prepare a brief analysis of the major issue or issues in case. Identify all issues in case.
For each issue identified in case, clearly indicate an acceptable proposed solution.