International Business Transactions And The Law Assignment – Australia.

Unit Title :- International Business Transactions And The Law
Assessment Type : Assignment
Word Count : 1250 words 10%
Students are required to attempt both questions; each question is of equal value.
Each essay has a word limit of 1,250 words, with a leeway of 10% each way. tudents are required to reference their essays and include a bibliography. (References and bibliography are not included in the word count.)
International Business Transactions And The Law Assignment – Australia.

International Business Transactions And The Law Assignment - Australia.

Assume when answering the question 1, that both Australia/NSW and Kamaria have introduced domestic legislation adopting the Convention on the International Sale of Goods.

When answering question 2. Assume that both Australia and the UK have introduced domestic legislation adopting the UNICITRAL.

Question 1
James owns and operates a furniture store in Sydney. He has recently decided to “go upmarket” through also offering antiques and collectables for sale, and has started to import statues and other arte facts from overseas.

James has been exchanging emails with Mr Owenton, a cousin of the Kamarian ( a fictious country) President, to purchase a number of wooden elephant statues (which Kamaria specialises in making). James has received an email from Owenton, who has offered to sell James 100 elephant statues at $1,000
each, FOB.

James, who is relatively inexperienced in international trade issues discusses this email with his friend Susan,who is a more experienced importer. Susan advises James that at the price of $1,000 per statue, Owenton should sell him the statues DDP rather than FOB. James replies to Owenton stating that he
would like to accept his offer of $1,000 per statue – but only on DDP terms. He also replies that he will pay a 40 per cent deposit to be paid into Owenton’s bank account, and with the remaining 60 per cent to be paid as soon as he receives the statues.

International Business Transactions And The Law Assignment – Australia.

International Business Transactions And The Law Assignment - Australia.

James does not hear back from Owenton. Three weeks later he receives a call from an officer of the Australian Border Force (ABF), advising him that a consignment has arrived for him at Sydney’s Port Botany shipping terminal.The ABF officer advises James that an import duty of $1,500.00 is payable on
the consignment of statues, and also that the consignment will not be available for another week as the wooden statues need to be assessed for any insects (as there is no record of them being treated before departing Kamaria). The ABF officer also advises James that several of the statues appear to have been
damaged during the voyage – as they do not appear to have been adequately packaged.

James is outraged at all this news, and seeks your advice regarding any claims he might be able to make against Owenton.

Question 2
Bligh Imports PLC is an English importer of goods from around the world. It signed a contract with Fletchers Exports (Aust) Pty Ltd for the purchase of 50,000 bread-fruit plants. Bligh chose to purchase the plants from Fletchers because of Fletchers’ claims in negotiations with Bligh’s officers in London, that the plants were grown organically with no artificial growth chemicals.

However, when Bligh received the plants, they were found to be genetically modified, which in Bligh’s opinion made them virtually unsellable (owing to the revulsion in England for genetically modified foods).

Upon Fletchers’ refusal to admit any wrongdoing, Bligh immediately instructed its Australian lawyers to issue proceedings out of the Federal Court of Australia, alleging breaches of s 18 of the Australian Consumer Law (misleading or deceptive conduct provisions) and breach of contract, and seeking damages equal to the cost of the bread-fruit. Bligh pursued this action despite a clause in the contract of sale stating:

“Any dispute arising out of this contract is to

International Business Transactions And The Law Assignment – Australia.

International Business Transactions And The Law Assignment - Australia.

be referred to arbitration to be held in Sydney Australia, pursuant to the UNCITRAL Model Law. The arbitration will be conducted by three arbitrators who will be suitably qualified in agriculture, and acceptable to the seller.”

Fletchers are concerned that they might not get a fair hearing before the courts (they say because judges generally don’t understand the “science” of agriculture), and seek a way of stopping the court proceeding. Advise Fletchers.