Business Relationships

Futures Wine Fraudster Sentenced

The relationships at hand reveal the significance of knowing who you are working with and how they are going to react. Rare Wines LLC customers reacted to the fraud by filing law suits and suing the company. Due to past experiences of not receiving paid for wine from the company the consumers were more apt to believe that they were never going to get any of their wine or their money back. The same can be said for Wallace and his company with previous troubles of the winery in France failing to supply the wine that was purchased. They knew that the winery did not deliver the wine before, so why should they trust them again - what type of conclusion was drawn? Not only did Rare Wines LLC lose value that has been added to their name, the winery in France has lost its value as well.

Everyone has a role in a business whether it is as the owner, manager, employee, supplier, lawyer or customers. It took a court date for an employee of Rare Wines LLC to step forward and say anything regarding what has been going on. Communication among all the players, trustworthiness, dedication and consistency are all important factors that keep a business to business relationship going well. Rare Wines LLC proved to be have opposite qualities of what a good business relationship should look like, which is why they are bankrupt and not in operation.

 

Take a look at the article – what do you think?

 

http://www.winespectator.com/webfeature/show/id/Futures-Fraudster-Sentenced-to-Pay-11-Million-Restitution-But-Avoids-Jail_3415

Comments




  • an interesting insight into international business and the supply chain involved.  it would seem that the nature of the business, serving many consumers from relatively few producers, puts the consumers at higher risk than most food related businesses. I hope it works out for the frauded buyers and confidence in the market is not eroded too much

    arhodes3, 2 years ago | Flag
  • Online fraud is becoming more common today because people are online shopping more and are more trusting in online shopping than they should be.  Case and point with this article from Rare Wines.  I think it is horrible that this man stole millions of dollars form people and he isn't getting prison time!  Some legal practices just aren't fair!

    cmyoung2, 2 years ago | Flag
  • Another example of one person's ego getting in the way of a business that once held much promise.  It is far too easy to use the Internet to delay the inevitable consequences of poor business management.  And, when you add a product that is easy to "lose" (wine futures), you have a recipe for a quick solution to a long-term problem!


    I have had a similar problem chasing down wine futures from a vendor.  Eventually, and with much work, I was able to secure my wine, but I later found out that the company was in financial difficulty.  "Buyer beware" has never been more important, whether you are buying a used car through a newspaper ad or making a minor purchase on ebay!  The handshake has now been replaced by user feedback, and that is not necessarily a bad thing, but it does require us to participate in order that all are aware of the people with whom we are dealing.

    MikeZ, 2 years ago | Flag
  • I miss the days when a person's word was their bond, a handshake meant something, and most people trusted everyone else.  It's sad that there are always people trying to cheat others these days to make a quick buck.  As a person who does a lot of online shopping, I generally don't think too much about fraud. I'm careful, of course, but have accepted this way of doing business in today's world.  I do, however, still long for the more idyllic days like those in "Leave it to Beaver".  


    Smile

    skdonner, 2 years ago | Flag
  • As a business owner, you learn early on to be fair and honest with each customer and all your business dealings.  There are checks and balances in any good business model to make sure you manage your business right.  When dealing with international trade, you really need to have an established relationship or you run the risk of problems just like these.  It doesn't take much to lose your business or your customers if you make the wrong decisions along the way.

    lynnazak, 2 years ago | Flag

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