• Title/Summary/Keyword: Service Contracts

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Is CISG Applicable and Suitable in Service Contracts?

  • Kyujin Kim
    • Journal of Korea Trade
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    • v.27 no.3
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    • pp.43-64
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    • 2023
  • Purpose - This paper studies whether CISG can be a suitable governing law for pure service contracts. When CISG was first drafted, there was little disagreement on the fact that contracts for the sale of goods and those for the provision of services were two different types of contract. Based on this understanding, CISG explicitly provides that the Convention will apply to contracts where the preponderant part of the contractual obligation is on the sale of goods, not services. However, as more sales transactions have come to include more elements of services, mainly due to the advancement of the IoT industry, the distinction between goods and services became more blurred. Based on the observation of recent changes, some scholars even argue that such a change supports the applicability and suitability of CISG to even pure service contracts. The purpose of this paper is to critically analyze and evaluate their argument. Design/methodology - This paper focuses on two separate but related issues: CISG's 'applicability' and 'suitability' to service contracts. For the first issue, this paper will examine the rules of interpretation of international treaties under the Vienna Convention on the Law of Treaties of 1969, and will apply its rules to find the proper answer. For the second issue, this paper will perform logical and empirical analyses on the reasoning employed by scholars claiming the suitability of CISG to service contracts. Findings - This paper concludes that CISG does not, and should not, apply to pure service contracts. The argument that CISG applies to pure service contracts directly contravenes Article 3(2) of the Convention, which expressly states that it does not apply to a contract wherein the preponderant part of its obligation is about services rather than sales. Similarly, CISG is not a suitable governing law for pure service contracts because it aims provide rules specifically tailored to the needs of transactions of sales of goods, not services. Servitization of sales of goods transaction does not change this conclusion. Originality/value - This paper presents different views from those offered by some eminent scholars on the issue of applicability and suitability of CISG to service contracts. By doing so, it is hoped that the confusion caused in discussions so far are clarified. Hopefully, this paper can also provide practical guidance to practitioners engaged in the fields of international sales, services, and IoT industries.

Optimal Service Contract Policies for Outsourcing Maintenance Service of Assets to the Service Providers

  • Rahman, Anisur;Chattopadhyay, Gopinath
    • International Journal of Reliability and Applications
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    • v.8 no.2
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    • pp.183-197
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    • 2007
  • There is a growing trend for asset intensive industries to outsource maintenance services of their complex assets since outsourcing through service contract reduces upfront investments in infrastructure, expertise and specialised maintenance facilities. Estimation of costs for such contracts is complex and it is important to the user and the service providers for economic variability. The service provider's profit is influenced by many factors such as the terms of the contract, reliability of asset, and the servicing strategies, costs of resources needed to carryout maintenance. There is a need to develop mathematical models for understanding future costs to build it into the contract price. Three policies for service contracts are proposed in this paper considering the concepts of outsourcing maintenance service of assets to the service providers. Conceptual models are developed for estimating servicing costs of outsourcing through service contracts by considering time dependent failure mode.

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A Study on the Unfairness of Adhesion Contracts for Internet Contents Service (인터넷 콘텐츠서비스 이용약관의 불공정성 검토에 관한 연구)

  • Park Mi Hye;Kang Lee Ju
    • Journal of the Korean Home Economics Association
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    • v.42 no.12 s.202
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    • pp.123-140
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    • 2004
  • The purpose of this study was to explore the unfairness of adhesion contracts for internet contents service. The internet contents were classified into six types of avatar, learning, download, e-book and movie internet sites. The adhesion contracts of internet contents service were collected in 60 internet sites. The unfairness of the adhesion contract was reviewed under the adhesion contract regulation act. The major results were as follows. First, the obligation of clear statement, explanation, and delivery was not observed completely. Second, many articles of adhesion contract were unfair and they especially violated articles 7 and 9. Therefore, the standard adhesion contract system for internet content service should be enforced and self-regulation of information service providers is needed.

A Study on the Outsourcing of Aircraft Maintenance Contracts

  • Cho, Kyung Rak
    • Journal of Aerospace System Engineering
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    • v.15 no.6
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    • pp.66-71
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    • 2021
  • With the exception of some large domestic airlines with adequate maintenance capability, most low-cost and small airlines do not have the facilities, equipment/tools, or manpower to perform periodic inspections over "C check." They are repaired according to maintenance programs specified by manufacturers. The outsourcing (domestic or overseas) of maintenance contracts is thus crucial to achieve good quality service at low cost, and these contracts therefore need to be signed with a full understanding of what is to be expected. This study aims to determine the requirements to be considered prior to finalizing such contracts.

An Analysis of Customer Satisfaction by Operational Characteristics in Business & Industry Foodservice Operated by Contracted Foodservice Management Company (위탁운영 사업체급식소의 운영현황에 따른 고객만족도 분석)

  • Yang, Il-Sun;Han, Kyung-Soo
    • Journal of the Korean Society of Food Culture
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    • v.14 no.5
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    • pp.487-495
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    • 1999
  • The objectives of this study were to analyze customer satisfaction by operational characteristics in business & industry foodservice operated by contracted foodservice management company. The instruments were developed by reviewing literatures on customer satisfaction and by intervewing with managers, employers and customers. A total of 1000 questionnaires were hand delivered at the ten contracted foodservice operations by designated coordinators. A total of 833 questionnaires were usable; resulting in an 83.3% response rate. Statistical data analysis was completed using the SAS 6.04 for description, T-test, ANOVA. Overall customer satisfaction score for office building foodservice was significantly higher than those for manufacturing company foodservice. As for the type of management contracts, overall customer satisfaction score for management fee contracts was significantly higher than those for profit and loss contracts. With regard to payment method, overall customer satisfaction score for meal card was higher than those for POS system. Concerning the categories of service, overall customer satisfaction for combo-tray service was higher than those for cafeteria-tray service and partially self-service. As for types of menus, the score of overall customer satisfaction was not significantly different between cafeteria menu and double choice menu.

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A Study on the Critical Factors of Logistics Service Contracts (물류서비스 계약의 결정요인에 관한 연구)

  • Jung, Kyung-Seon;Kim, Tae-Bok
    • Journal of Korea Port Economic Association
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    • v.25 no.3
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    • pp.93-116
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    • 2009
  • As the popularity of logistics service outsourcing has been continuously growing, one of the most frequently addressed issues is how to estimate the effect of cost reduction for users and profit gains from outsourcing contract for providers. Many manufacturing companies agree that logistics outsourcing helps to reduce their operating costs, but some other companies still do not achieve the cost saving or do not trust logistics service providers, so they keep up in-house logistics operations. On the other hand, logistics service providers have low profitability from domestic business activities since they should meet the requirements for highly customized and diverse services from customers and unstable market situation. This study provided the status report dealing with logistics service contracts in Korea. From the focused group interview with logistics professionals, we found out that service scope, scale and cost structure are the most influential factors affecting logistics service contracts. Also, logistics service providers are more sensitive than users regarding value-added logistics service, contract duration and process. Moreover, this study also proposed the standard clauses for logistics service contract and types of logistics contract applied in current logistics fields. As a result, it is expected that these achievements from this study can be utilized to improve the satisfaction of logistics outsourcing in upgrading service quality and customer service level.

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Research Topics Based on Korea IT Outsourcing Service Industry (한국 IT 아웃소싱서비스산업 구조 분석을 통한 연구 주제)

  • An, Joon-M.
    • Journal of Information Technology Services
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    • v.1 no.1
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    • pp.161-168
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    • 2002
  • Many problems in IT outsourcing service industry of Korea are rooted in the idiosyncratic structure of the industry. This structure causes the unique characteristics of service level management, service delivery methodology, and contracts. This study looks into the status of the industry, vendors, and markets of IT outsourcing and proposes some of relevant research topics of each area respectively.

Determinants of Insurance Products Cross-selling Performance : Focusing on Career Experience (직업경험을 중심으로 한 보험상품 교차판매 성과의 결정요인 분석)

  • Son, WooCheol;Kang, ShinAe
    • Journal of Service Research and Studies
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    • v.9 no.3
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    • pp.39-60
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    • 2019
  • The purpose of this study is to analyze the determinants of insurance product cross selling performance. For the study, 11 insurance managers and 2 sales managers belonging to A insurance agency were selected and in-depth interviews were conducted. The analysis of the research data was done by the open coding method suggested by Strauss & Corbin(2001). As a result, 84 concepts, 28 subcategories and 10 categories were derived. The ten categories that were determinants of insurance product cross-selling performance were personal characteristics, consultation method, cross-selling ratio, sales culture, education, customer change, customer DB provision, satisfaction, business support system, and customer service. In order to verify the qualitative results, quantitative analysis was emplyed to the actual performance data of insurance planners belonging to A insurance agency during April 2016~March 2019. As a result of the analysis, the age, position, and the number of months worked in the insurance company had a statistically significant effect on the number of life insurance contracts in total insurance contracts and life insurance contracts in total insurance contracts. In addition, the age, position, and the number of months worked in the insurance company had a statistically significant negative impact on the number of non-life insurance contracts in the total number of insurance contracts and the total amount of insurance contracts in total insurance contracts. The result of this study can be an important basic data for the development of educational programs and job support systems for the training of insurance planners. Insurance companies should refer to ten categories derived from qualitative research in order to increase the performance of insurance planners and to promote long-term service. Especially, it is necessary to develop specialized education programs and job support systems so that cross sales that increase the proportion of life insurance sales increase.

Current Status of Outsourced Food Service Operations According to the Type of Long-Term Care Institution and Plans for Improvement (장기요양기관 유형별 위탁급식 운영 실태 및 개선 방안)

  • Kwon, Jinhee;Lee, Heeseung;Jeong, Hyeonjin;Chang, Hyeja;Lee, Jungsuk
    • Journal of the Korean Dietetic Association
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    • v.28 no.2
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    • pp.67-84
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    • 2022
  • This study aimed to explore the status of food service outsourcing behavior of long-term care institutions (LTCIs) through a cross-sectional survey using a questionnaire administered between July 16th and August 7th, 2020. The survey respondents were either dietitians or facility managers, who worked at 731 nursing homes, 477 group homes, and 673 day-care centers. Approximately 25.9% of nursing homes, 11.7% of group homes, and 33.1% of day-care centers used a managed-services company to operate their food service units. The main reason for outsourcing food service by nursing homes was related to the staffing of dietitians and cooks, whereas group homes and day-care centers outsourced food services due to factors relating to meal costs and the cooking process. Almost all the LTCIs entered into private contracts for outsourced food services. Only a few food service contracts included the types of meals, nutrition standards such as protein and calories per meal, and the parameter or ratio of food cost. Of the respondents, 84.5% from nursing homes, 87.5% from group homes, and 87.1% from day-care centers agreed that the quality of outsourced food services of the LTCIs should be regulated. Meals are essential for maintaining the health and functional status of LTCI users. As more LTCIs outsource their food services, we suggest the following: (1) Increasing the minimum dietitian staffing standards for LTCIs as per the Welfare of Senior Citizens Act and requiring at least one dietitian for every nursing home, (2) Making it mandatory to use a standard food service contract template when drafting food service contract, and (3) Developing realistic standards for food service operations considering the size and operation type of the LTCIs.

Automation of Service Level Agreement based on Active SLA (Active SLA 기반 서비스 수준 협약의 자동화)

  • Kim, Sang-Rak;Kang, Man-Mo;Bae, Jae-Hak
    • The Journal of the Institute of Internet, Broadcasting and Communication
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    • v.13 no.4
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    • pp.229-237
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    • 2013
  • As demand for IT services increase, which are based on SOA and cloud computing, service level agreements (SLAs) have received more attention in the parties concerned. An SLA is usually a paper contract written in natural language. SLA management tools which are commercially available, implement SLAs implicitly in the application with a procedural language. This makes automation of SLA management difficult. It is also laborious to maintain contract management systems because changes in a contract give rise to extensive modifications in the source code. We see the source of the trouble is the existence of documentary SLAs (paper contracts) and corresponding executable SLAs (contracts coded in the procedural language). In this paper, to resolve the current SLA management problems we propose an active SLM (Active Service Level Management) system, which is based on the active SLA (Active Service Level Agreement). In the proposed system, the separated management and processing of dual SLAs can be unified into a single process with the introduction of active SLAs (ASLAs).