Case studies of international disagreements

Oksana K.

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Case studies of international disagreements

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You are the vice president of sales for The Pillow International Inc., a French manufacturer of bed pillows. The raw materials needed for making pillows are all sourced from suppliers overseas. Your firm purchases feathers from exporters in China who maintain large flocks of geese and ducks for breeding. Cotton ticking and other textiles are purchased from mills in Germany. Every year you show your products at the International Bed Show in New York. This year, a delegation of Japanese buyers, representing several well-known Tokyo stores, showed interests in your best quality pillows. The president of your firm expressed interest in these contacts because although Europeans use the same old pillow forever, the Japanese are fussy about their bedding. You followed up with sample, product, and pricing information. After several discussions and months of correspondence, you now expect to be receiving your first overseas orders.

Sommaire

The opportunity of Japanese buyers
1. How making bussiness with Japanese Buyers?
2. What is your conduct if a buyers shows interest in purchasing large quantities?
3. What terms might the agreement contain?
4. What factors might influence the selection of a choice of law clause?
5. What other precautions should you take?
The soda arrived in Bombay 6 months late
1. Was Colorado Fuel liable for damages?
2. Does it matter that Colorado Fuel may have known that a strike was imminent?
3. As a business person what would you have done prior to the strike to mitigate damages?
The United Nations, The International Court of Justice, The World Trade Organization, NAFTA, The European Union
1. Find information about the following organizations
2. Would the organization have any effect on the way in which your business conducts international business? Why?
A business of current computer technology
1. What business forms are available to this business for acquiring sophisticated computer technology?
2. What are the advantages and problems inherent in the various options?
The Coca-Cola Company brought a trademark infringement action against Koke Should
1. Coco-Cola win in its lawsuit?
2. Why or Why not?

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Extraits

[...] The soda was fully loaded aboard a ship when a labor strike made it impossible for the vessel to sail. As a result, the soda arrived in Bombay 6 months late. The buyer sued for the late shipment. A. Was Colorado Fuel liable for damages? First of all let's define used incoterm by parties. CIF (Cost, Insurance and Freight) means that title, risk and insurance cost pass to buyer when goods are delivered on board the ship by seller who pays the transportation cost to the destination port. Since this point all risks are supported by the buyer. [...]

[...] Can you suggest some of the things The Pillow might want in its clause? Written contract is an additional security for both parties to contract. Parties freely select clauses they want to include to the contract. However the main role of selected clothes is to avoid conflicts and misunderstandings in very particular cases. From this we can easily understand that Force major clause is a very important point in the contract. Force major clause makes provision for extreme situations but that are likely to happen especially in countries such as Japan. [...]

[...] Japan has also reputation to be a difficult market in which many even big companies fail. More over we should take under consideration an important cultural barrier between Europe and Japan. So of course we should go and meet our future partners During our visit we should pay a particular attention to the behavior of our partners towards our firm. We should visit their warehouse. We can also visit their distribution network. It is important to know what are other products already distributed. Finally we can ask some warranties of solvency. [...]

[...] To be more precise they can sue Koke Company for “tarnishment” of the Coke mark because apparently Koke has note the same quality of product as Coca –Cola. Nevertheless the company can never be sure to win the lawsuit. The case of Mc Curry and Mcdonald seen in class is a great example to that. Sometimes local laws can be contradictory and favorable to local producers. http://www.lentreprise.com/3/5/2/la-clause-de-force-majeure-dans-un- contrat_8176.html http://www.eur- export.com/francais/apptheo/logistique/transport/incotermsvd.htm#6 http://www.un.org/en/aboutun/ http://www.un.org/french/aboutun/icjstatute/ http://www.icj- cij.org/court/index.php?p1=1&PHPSESSID=3211517612db6f4cdfdf6bf14b5a46ed http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact1_e.htm http://www.nafta-sec- alena.org/en/view.aspx?x=283#What%20is%20the%20NAFTA http://www.intracen.org/btp/wtn/newsletters/2009/ip_6.htm [10]http://www.lawdit.co.uk/reading_room/room/view_article.asp?name= . [...]

[...] The aim of EU was to develop a single market. To do that governments have decided to set up a harmonized system of laws between member states so the EU ensures the free movement of: People, Goods, Services and Capitals; From the beginning 16 member states have adopted a common currency, the euro in order to limit change risks and to facilitate trade exchanges. B. Would the organization have any effect on the way in which your business conducts international business if so why? [...]

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