CASE-STUDY

Case Study Ahmet (A) previously worked for various printing offices; he decides to buy a simple printing machine in order to work independently. For this purpose, he buys a printing machine from (B)Baki Machine Industrial Limited Liability Company– Seller. Sale price is TL. Printing machine price is paid one month after the purchasing date. Also, Ahmet (A) rents Cemal’s (C) office. According to the lease contract, the rental fee is (1.000 TL) and must be paid until the fifth day of each month.

Case Study-Cont. Before the completion of installation process of the machines to the workplace, Ahmet (A) prepares and distributes some flyers in order to announce that his office is ready to work for small-scale printing services such as all types of business cards, wedding cards and so on. Luckily, Ahmet(A) signes a contract with Deniz (D), who wants printing services from Ahmet, for printing of five hundred pieces of wedding cards.

Case Study-Cont. Ahmet wants to register his trade name as “Yazılım Printing-Office” to the trade register; however, this request is rejected by the register of commmerce. Although it has been a very long time, Ahmet does not start to work. Also, he cannot prepare the wedding cards of Deniz (D) on time. In addition to that, Ahmet can pay neither rental fee nor the bond on time.

Questions 1- Please evaluate the legal status of Ahmet’s Printing Machine Office. 2- Can we accept Ahmet as a merchant? Why? 3- Please evaluate relationship between A&B, A&C, A&D? 4- Which Court is the competent court for the dispute arising between A&B? 5- Is it possible for B, asking for interest for the debt that is not paid on due date? If yes what kind of interest? 6- What do you think about the Ahmet’s trade-name? Is it valid? Why? What about rejection? 7- Is it possible for A to refrain from the liability against D, by saying operation of the enterprise is not started?

Some Clues Question 1: – Commercial enterprise or not? – Article 11/1 of TCC An enterprise that will be operated permanently and independently aiming to generate income which exceeds the limit prescribed for the craftsman enterprises There are four components of commercial enterprise: – Economic activity- It must be “generate income oriented” – It must be continuous – It must be independent – Its scope must exceed the craftman’s scope of activities

Some Clues Question 2: Real person or legal person merchant? TCC Article 12- Definition-Real Person merchant The person who operates a commercial enterprise, at least in part, under his name The person involved should have started the operations. If he/she has entered the establishment with register of commerce or has made annnouncements to the public, whether through newspapers or by distributing letters or leaflets, adverstising establishment, he would still be regarded as a merchant

Some Clues Question 3 – Commercial Affair – Real person or legal person? – All of the affairs of the legal person merchant are commercial – Commercial Affair TCC Article 3  The ones which are regulated in the TCC  The ones which are concerning the commercial enterprise TCC Article 19- presumption  The debt of the merchant is commercial. (19.1)  Exception for real person merchants Affairs which is deemed commercial for one party (19/2) The contracts which are deemed as commercial for one party, shall be accepted as commercial for the counter party

Some Clues Question 4 – Juristiction- Which Court – Article 4 of TCC – Commercial Court – If there is no Commercial Court---- Civil Court of First Instance

Some Clues Question 6 – Real Person or Legal Person Merchant? Composition of Trade name for – Real Person Merchant – Legal Person Merchant – Trade-name for Real Person Mechant Name + Surname = Tradename Abbreviation is possible or not? What kind of annexes?

Some Clues Question 7 – Ahmet is merchant or not? – Conclussions of being merchant? – To behave as a prudent business man?