This study involves a scenario where you are the vice-president of a 75-person company ("Company") in the fictional French-speaking country of Euphoria, whose capital is Anytown, whose legal system closely resembles that of France's, and which is party to the CISG. The company designs and sells a newly-invented mobile phone, the CoolPhone, that can be worn on the user's wrist by means of an ordinary watch strap (and that uses a wireless earpiece). One of your managers, Eunice, having learned that you studied International Business Law at ISEG, asks you to help her handle the following three situations.
In the situation presented, we have a regular client who complains about delivery delays, and who wants to be compensated for that. It also appears that some goods were delivered in a damaged state. Moreover a client from our buyer threatened a lawsuit for a default in the Coolphone. Our buyer wants to pay 30/unit instead of the 40/unit initially proposed. What are the steps you will take to address this situation?
[...] However we will need the lawyer for a few technical questions. For example, on Internet, we can learn that “the secret is think domestic. Establish(ing) a USA "presence" for your business - at least in the minds of your customers. [ ] If you want Americans to buy your foreign goods, you have to anticipate and solve their potential concerns in various areas, such as how to order, speed and reliability of delivery, training, customer service, and returns and repairs. [...]
[...] It could be or more years. In this case I suggest explaining Annette that she has done something really bad in a very gentle manner. And to make her understood that we could not keep her anymore because our trust disappeared. We will them offer her a certain amount of money as compensation of her work in the company and (the most important) prevent her from going to competitors, what would represent a disaster for us. Her signature will forbid her to sign in one of our listed competitors for a period of 5 years but also in the potential ones that could arise in the coming years. [...]
[...] • A USA warehouse to store literature and /or products for prompt response to inquiries and orders. • A USA bank account and credit card merchant account for processing payments and paying suppliers. • USA mail metering services for business correspondence and bulk mail. • USA shipping and/or courier accounts for fast, low-cost delivery. • USA citizen agents or employees for carrying on some basic business operations and customer relations. None of the above "devices" needs to be expensive. In fact the lot can be had for a base cost of $300 per month or less. [...]
[...] Those clauses must contain a limitation of time and space to be valid. On one hand, we have the opportunity to get a foothold in new markets and to take advantages of low cost labour force in China, but on the other hand we face the risk to pay high taxes because of implementation in USA and get imitated in China because there is no law that frames counterfeit. The first thing to do is to learn a lot from law regulations that applies in such cases. [...]
[...] The seller must supply additionally transport insurance. The seller signs a transport contract pays the freight and insurance premium.” This transfer of risk is highly important and has to be precisely recognized and determined because, in case of troubles like theft or damages occurs, the insurance policy has to determined on which responsibility damages or theft had occurred. In our case, moisture damages had occurred when the CoolPhones were delivered on ship's board at the port of departure or during the carriage. [...]
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