Reference no: EM132063715

Learning Outcomes Assessed

- Examine and discuss the laws that govern international commercial or business transactions
- Analyse the laws that govern international sales, transportation, payments, and commercial disputes

Graduate Attributes
- Knowledge
- Communication
- Cognitive, technical and creative skills
- Research
- Self-management
- Ethical and Professional Responsibility

Task Description

Assignment one will comprise of two legal problems that require you to:

1. analyse the laws that govern international sales and apply them to the legal problem(s); and

2. analyse the laws that govern international transportation and international sales payments and apply them to the legal problem(s).

Question 1

Beauty Bananas Ltd (BB), a Brisbanebased company, entered into a contract with Fresh Fruit Inc (FF), a Chinese based company, to supply 100 tonnes of bananas in two shipments:

1. 50 tonnes between 8-10 May 2018; and
2. 50 tonnes between8-10 June 2018.

The contract stated that: BB was responsible for the delivery to an ocean carrier (nominated by FF on or before 3rd February 2018) andexport clearance; and FF was responsible for ocean freight. The contract also stated thatthe seller was responsible for marine insurance.

On the 8th February 2018, FF notified BB to deliver the first shipment to China Fruit Shipping (CFS), but withhold its second shipment until after the 17th June 2018 but before 20th June 2018.

Before the shipments arrived, BB sent FF documentary evidence of delivery to CFS. The first shipment arrived on the 8thJune 2018, but the shipment that arrived was 100 kilograms less than contractually agreed. The second shipment arrived on the 8th July 2018 but 2 containers containing a total of 2 tonnes were missing, and 5 tonnes were spoiled.

Discuss whether BB has complied with their obligations under the Incoterms 2010, the CISG, and sale of goods legislation or other applicable domestic law.

QUESTION 2

Following on from question 1, CFS provided a bill of lading to BB after taking possession of each shipment of bananas. The bill of lading excluded CFS's liability to damaged goods caused by a breakdown of the refrigeration system.

It now appears that in relation to the first shipment, the outstanding 100 kilograms of bananas were stolen by the carrier's employees. In relation to the second shipment, 2containers went overboard because the CFS was compromised due to an ocean earthquake, 3 tonnes were spoiled because of refrigeration problems, and 2 tonnes were spoiled because they were already over ripe at the time of delivery.

As a result of investigations, it was discovered that BB bribed CFS to provide a clean bill of lading to the advising bank, who then provided the documents to the issuing bank. The issuing bank then issued credit to the advising bank.

Further investigation revealed that the maintenance staff on the CFS noted that the refrigeration system on the CFS stopped working on the 9thMay 2018 and were waiting on new parts from Germany to arrive on 18th June 2018.

Advise the CFS of its liability to BB and the issuing bank, making reference to the Carriage of Goods by Sea Act 1991 (Cth),amended Hague Visby Rules, and the UCP600.

Attachment:- Assignment.rar