Hong Kong-based products reseller Lotus Computer and one of its owners are facing legal action from distributor Tech Pacific Hong Kong for allegedly failing to pay for $US31,278 worth of goods.
Lotus Computer purchased Microsoft keyboards and game pads, Motorola handwriting recognition software, and Intel CPUs from Tech Pacific last September and October, and the company still had not paid for the goods three months after the invoices were due, according to a Tech Pacific executive.
Tech Pacific has been doing business with Lotus Computer for more than three years, and Lotus Computer's credit history has been less than stellar, the executive claimed.
"Lotus Computer likes to pay late. If its business is not good, it will not pay on time," he said. "The company does not pay its invoices, but they might pay once every half a year. Maybe our financial controller has lost patience with them."
Lotus Computer asked Tech Pacific to extend its credit line in 1996, and at Tech Pacific's request, a part-owner of Lotus Computer named Roger Chan signed a guarantee and indemnity in June of that year, making himself personally responsible for any debt that Lotus Computer owes Tech Pacific, according to the executive.
"We ask our clients to sign a guarantee and indemnity in writing when they want to increase their credit by a large amount," the executive said. "We are not gamblers and this is not a gambling game. We want some kind of security."
Lotus Computer is not affiliated with Lotus Development, the IBM software subsidiary.