Reference no: EM13816428
1. You are a sales representative for Lap Top Corp., a U.S manufacturer of computers, who appeared at a trade show in March 2014 and engaged in several conversations with officers of Techno Co., an Ecuadorian company wishing to modernize and considering the purchase of your product. Techno officers took with them a catalogue and a price list quoting the price for the LTZ3 computer at $3000 each. The prices were effective until May 1, 2014.
On April 20, 2014 one day after receiving a letter from Lap Top changing the Price of the LTZ3 to $3400 each, Techno, referring to the catalogue and price list, faxed an order for 30 LTZ3 computers at a price of $3000 each and total contact price of $95000 CIF Guayaquil, Ecuador, delivery to be on or before August 1, 2014.
You were horrified when you received the order with the $3000 price per computer, but didn't want to endanger future relations with Techno and on April 21, 2014 sent an overnight letter acknowledging Techno's order for the 30 computers with a total contract price of $95,000. The next day your boss hit the ceiling when she learned about the transaction and told you to "call the whole thing off" You faxed a letter stating your regrets and withdrawing from the sales transaction. The overnight letter was delivered to Techno's receptionist at the moment she took your letter from the fax machine.
Techno sued Lap Top claiming a binding contract of sale. Lap Top denied any contractual obligation to sell to Techno.
Decide who will succeed and why. Will c1sg apply? Discuss all issues raised by the communications between the parties.
2. Several years ago, a multilateral treaty came into effect among 45 countries, including most of the major developed countries of the world. The treaty, known as the Outer Space Treaty, restates the prior understanding among countries and forbids any members state of the treaty from claiming "any planet, asteroid, or other celestial body" as part of the territory of the member state. Country X, which is not a party to the treaty, recently sent a spacecraft to the earth's moon where crew members unfurled the flag of State X and claimed a 1,000 square kilometer surface area of the moon to be part of the territory of State X. Describe the three sources of international law and discuss which would provide the basis for a lawsuit against State X to declare its territory on the moon to be a violation of international law.
3. Miel, Co., a Spanish company, promised to buy 25,000 gallons of honey from North East Enterprises, Ltd., in New York under a C.I.F. Cadiz contract. North East Enterprises sold the honey at a price of $750,000. The bill of lading described the goods as "25,000 gallons of New York shipped in 1000 barrels." Payment was to be made by an irrevocable, confirmed letter of credit upon delivery of a clean, on board bill of landing, a certificate of inspection and all of the other commonly required documents. North East delivered the documents to the confirming bank in New York. The inspection certified stated that "based on a sample taken from five gallons, the honey is of the kind ordered." The bill of landing had a notation on it that the goods had been partially destroyed by water leakage after they were loaded on board the ship.
Miel claimed that North East was liable for the water-damaged honey. Miel then argued that it was no longer obligated to perform the contract to sell 12,000 gallons of the honey to Madrid Grocers that it had entered into three days prior to the ship's arrival in Cadiz.
(A) Explain completely which party (North East, Mid, or Madrid Grocers) bears the financial loss for the water-damaged honey.
(B) What is the significance of a clean, onboard bill of lading?
(C) Because of the water damage to 200 of the barrels after loading onto the ship, Miel tried to recover the $150,000 value of the destroyed honey from the carrier, Atlantic Shippers, Inc. Atlantic Shippers denied responsibility for the loss and argued that even if it were liable, the law does not obligate it to pay $150,000 for the loss. Decide, thoroughly discussing the arguments of both parties.
4. Your company is actively looking to expand your business into other countries. Compare fully the advantages and disadvantages of international trade and licensing.