The Rules of Private International Law - Case Study Example

?International Law Seminar Introduction According to article of the united nation’s convention on contracts for the international sale of goods [CISG] parties of different states are applicable to the sale of goods to improve trade on the global market. The constitution indicates that the rules of private international law lead to the application of the law of a contracting state. This applies to Danielle who has a significant reputation in business. Her style of packaging has attracted several customers to buy her chocolates. This has enabled her rise above her competitors on the market. Packaging is a vital factor in trade that enables consumers to identify a particular item. An attractive way of packaging a product catches the buyer’s eye and this promotes sales hence earning much profit. It is on this note that Danielle decided to make her order of the boxes from Stuttgart Germany even though she was a citizen of United States. Entrepreneurship involves producers inventing new ways and approaches so as to dominate the market. This includes strategy. Proper strategy enables producers to counter challenges that may face their business. Therefore, Danielle wanted her chocolates to have a unique packaging feature hence going for the Box Masters Company. The paper indicates that since the bossiness partners originate from two different countries, the CISG shall be used as an applicable law. Danielle made an order of 40000 boxes of chocolate from her supplier. According to Danielle, the holiday season was a perfect time for her business since chocolates are favorites for a large number of people. The first issue indicates that the supplier delivered goods on 16th October as expected by Danielle, but they were not the boxes that she had ordered. This shows that they were normal boxes, which her competitors used on market. Her clients identified her chocolates from others on market as a result of her packaging design. The issue reflects that consumers will not be able to distinguish Danielle’s chocolates and this will lead to a loss. Thanksgiving and Christmas holidays offer reliable opportunities for business operations. Danielle was optimistic that she would make much profit similar to past years. Danielle wrote to the Box Masters informing them that the goods she had received were not what she had ordered. She explained to the company that using the normal boxes would make her lose customers, which would bring down her business. The Box Masters explained to the entrepreneur the challenges the company was facing, and indicated that they would send 10000 boxes by October 26th and finally deliver the remaining 30.000 boxes on November 16th. The Box Masters fulfilled their request where they delivered 10000 boxes on October 26. However, at that time damage had already taken place. Danielle had lost several clients as a result of the delay. The memo indicates that it was not imperative for the Box Masters to argue that Danielle could be sold the items on a subsided price. The mutual agreement between the buyer and the seller indicated a specific item and not just any item on shelf. Since they sent a wrong product they are required by law to stand in for the cost of shipment and insurance. According to article 16 of United Nation’s Convention on Contracts for the International Sale of Goods [CISG] an offer may be revoked if goods reach the buyer before he has transmitted an acceptance. Therefore, from the above illustration, Danielle has aright to refuse the delivery of the 40000 boxes because they were dispatched without acceptance. It also states in article 17 of the CISG of the constitution that an offer is terminated when rejection reaches the seller. This can be shown since Danielle wrote to the Box Masters indicating that she had nothing to do with the normal boxes. According to this information, the Box Masters should make arrangements for the shipment of the normal boxes back to their warehouse since Danielle had paled a rejection. The main objective of any business venture is to satisfy her customers. A consumer is a major component in business because he contributes to production flow of goods and services. Entrepreneurs should focus on the needs of their customers so as to sustain their business. Individuals go to the market to buy goods and services according to the choices and tastes of their consumers. . It is argued that traders who dot not satisfy the needs of customers lose them. Customers will feel contented when they feel that they have received the value of their money. Box Masters should have put this in mind before sending the normal boxes which had not been ordered. The seller had breached the fundamental coders of the contract. Another issue is shown when Danielle decided to buy boxes from China. She did this because she did not get a respond from the Box Masters. This decision did not breach the contract since the Box Masters had failed to respond, but instead they went ahead and delivered the 10000 boxes that were overdue. Secondly, when she made a request of three orders the suppler responded to the first order but delivered the second and third order subsequently. This shows that Danielle made a rush decision of purchasing boxes from China to save her business and she should not take responsibility.. On November 14th, the Box Masters delivered 30000 boxes to Danielle. According to the order that Danielle had made, she expected to receive 40000 boxes. From the above illustration, the supplier was able to deliver goods as ordered though on a late date. The delay made Danielle to incur a loss, and went further to buy the same products form another company. Her storage facilities can not accommodate the 40000 normal boxes, 10000 boxes from China and the 30000 boxes which had been just delivered. This creates a major issue in the contract since the stock may not be sufficient to the market because the period of the holiday was elapsing. The buyers made a request of 40000 boxes considering the available holiday season. However, she has two times the stock she had ordered. This was similar to the case of V111 ZR 159/94 in which a Swiss seller had a contract with a German buyer regarding New Zealand mussels [cisg_textbook_cases.pdf 2] According to the case at the Supreme Court, the buyer refused to pay the purchase price arguing that the gods were not safe. This was true because the quantity of cadmium on contained in the [product was beyond the recommended level by the German federal health department. This was followed by the buyer informing the seller to take back the products. The seller sought for a legal process to claim payment and interest. According to the Supreme Court, the fact that the mussels contained a high level of cadmium, the seller was far from observing the public law requirements of the buyer’s state. The court ruled that the buyer should pay the purchase price. According to article 35 of CISG, a seller must deliver products that are of good quality, quantity, and description. This law was breached when Box Masters delivered normal boxes, which Danielle had not ordered. The quality of normal boxes does not match the packaging identified with Danielle biasness. Moreover, Box Masters would have indicated the problem of machine failure to the buyer and indicate a delay in delivery. On the same line, Danielle should have waited on the promised date of delivery before buying gods form another supplier. this made her incur an additional cost of 10000 boxes. According to Danielle, packaging is a core factor of business. This made her abandon the available 40000 normal boxes and go for 10000 from China at an extra cost. Proper packaging is able to pull the buyers eye. This has enabled her to dominate against her competitors since her chocolates are identified by her unique packaging. The memo indicates that the seller notified the buyer regarding the late delivery. This was imperative according to the contract so as to keep the buyer informed. However, the seller breached the contract by sending products that had not been requested and which did not have the quality expected. Therefore, the seller breached article 35 of the united nation’s convention on contracts for the international sale of goods [CISG] the description and quality did match what was ordered. The seller gave notice of the machine failure to Danielle after sending the goods to her. This raises questions such as, what would have happened if the buyer would have kept quiet. After Danielle informing the Box Masters of delivering to her wrong products, the seller responded by indicating a delay in manufacturing. This does not validate the delivery of wrong products. The seller was supposed to inform the buyer concerning machine failure before ending wrong products. The Box Masters should have notified Danielle in advance to avoid panic and making hasty steps. Such hasty made her to buy boxes form china. She eventually had more stock than she expected. However, the memo has discovered that the seller made recommendations to the buyer regarding the purchase of normal boxes, but Danielle did not respond since she was not interested. The box masters delivered the normal boxes without receiving an acceptance from the buyer. This shows that they had no right of sending an invoice to Danielle regarding the normal boxes. The Box Masters delivered the remaining boxes as scheduled. Thanksgiving is a holiday in United States of America and not in Germany. This celebration does not apply to the seller. This applies to the ruling made by the Supreme Court regarding case number RG 93/4879; the decision of the lower court was authenticated. This case concerns a French seller and a Portuguese buyer on the sale and dismantlement of second hand hangar. According to the hangar assembly case, the buyer paid the initial two installments and did not pay the balance arguing that the law of conformity had been breached. The court indicated that the seller had breached the contract in delivering non conforming metallic elements and they were not fit for the purpose intended by the seller. However, the court indicated that the seller had cured the conformity of goods by repairing the metallic elements. The opinion of the court vindicated the seller for reassembling the hangar. According to this legal memo, the Box Masters breached the law of conformity by delivering normal boxes that had not been requested by the buyer. However, they eventually delivered the rightful products in total number, and according to the time they had informed the buyer. This clears them from breaching of the conformity law. The mutual agreement between the buyer and the seller indicated a specific item and not just any item on shelf. Since they sent a wrong product they are required by law to stand in for the cost of shipment and insurance. The parties were engaged in a long term business relationship which reflects their mutual understanding. Such a long business partnership was enough to built trust in each other. According to this legal memo, Danielle is responsible for the payment of 40000 boxes delivered to her. These are the boxes of unique identity that she had ordered and the company had delivered. On the other hand, the memo suggests that the Box Masters should take the respo0nsibility of shipping the normal boxes back to their warehouse. The boxes had occupied Danielle warehouse and she was unable to store her own products. The congestion caused by the extra stock posed a storage challenge. She also encountered a challenge in the disposal of the gods since she had lost some customers as a result of the delay. The delay was caused by the Box Master’s machinery failure. According to article 81 on effects of avoidance, a party who has performed the contract wholly of in part may claim reinstitution. Danielle had ordered the 40000 boxes considering the time frame ahead of her. The delay had affected marketing her goods. This shows that some goods will have to stay in her warehouse more than she had planned. The united nation’s convention on contracts for the international sale of goods [CISG] was invented to improve trade on the global market. It helps to offer competition of all business stakeholders. It is a route map to offer guidance to trade ventures around the globe. The law was not meant to cause pain and suffering to business entities, but it was identified to bring relief and protection. Conclusion The main objective of an entrepreneur is to make profit. An increase in profit making indicates the growth and expansion in business. This indicates that traders should avoid losses since this can affect their business negatively. The law is a governing foundation of business. Those involved in international trade should conversant since ignorance is not defense. The quality of normal boxes does not match the packaging identified with Danielle biasness. According to Danielle, packaging is a core factor of business. This made her abandon the available 40000 normal boxes and go for 10000 from China at an extra cost. The memo has discovered that the seller made recommendations to the buyer regarding the normal boxes, but Danielle did not respond. This indicates that she did not send n acceptance to the seller. This shows that they did not have aright of sending an invoice to Danielle regarding the normal boxes. The Box Masters delivered the remaining boxes as scheduled. Thanksgiving is a holiday in United States of America and not in Germany. This celebration does not apply to the seller. However, these holidays are the driving force behind the buyer’s order. Delay in delivery caused her much damage and loss. Entrepreneurs should focus on the needs of their customers so as to sustain their business. Individuals go to the market to buy goods and services according to the choices and tastes of their consumers. Danielle could not sit and wait to see her customers go away from her business. She had to act to save her chocolate industry. Work Cited fact_pattern.pdf cisg_textbook_cases.pdf Read More