-
Cases
1. Dispute
Caused by FOB
A
northern
China
Chemicals
Import
and
Export
Company
A
and
the
Chemical
Products
Company B of
California in the United States entered into a
chemical products sales contract on
the
basis
of
FOB
terms
．
Company
A
loaded
the
goods
on
the
Singapore
vessel
assigned
by
Company B three days before the
deadline
．
Before
loading
，
the goods had been
inspected
，
showing
the
quality
of
the
goods
is
in
good
order
and
in
compliance
with
the
contract
stipulations
．
When
the
goods
arrived
at
the
destination
in
San
Francisco
，
the
inspection
authorities found
that the quality of the goods changed and there
were some agglomeration of
goods
．
After
careful
investigation
it
turned
out
that
it
was
because
of
the
poor
packing
that
caused the quality to
change
．
The survey confirmed
that due to bad packaging of goods in transit
the goods absorbed moisture in the
air
，
which led to the
original granular form lumps of raw
materials
．
Company
B filed claims against Company A
．
However
，
Company A
believed that before
shipment of the
goods the test for the goods was
qualified
，
the quality change
didn
’
t happen
before shipment but during the
transportation
，
that
was
，
after the goods on board
the vessel
，
quality
change
occurred
．
In
accordance
with
international
trade
practices
，
the
consequences
should be borne
by the buyer
．
Therefore
，
Company A refused
compensation
．
Question
：
Do you
think Company A
’
s refusal is
reasonable? Please give your explanation of how
to deal with it
．
2
．
An
export
company
in
China
signed
a
red
bean
exporting
contract
with
a
South
Korean
company
．
The two
sides provides
：
500 metric
tons of beans
，
50 kilograms
sacks packaging
，
and
a total of 10000
bags
．
On delivery of the
goods to the port
，
1000 bags
got lost
．
So the temporary
deployment was needed but the packaging
was woven bags
．
After the
goods arrived in South
Korean
，
South
Korea Customs found that the weight was only 47
kilograms per bag
．
In
response
，
South Korean
company rejected the goods
．
Question
：
Try to
analyze whether the rejection is reasonable? What
measures could be taken to
remedy?
3. A Straight Bill of
Lading and Its Nature
In2008
，
a Hunan
Provincial Foreign Trade Corporation and an
American Greens Corp
．
signed
an export contract of
“
Xi
Mas
”
lights
goods
．
During May and
June
，
with the letter of
credit
settlement
，
the
company exported two
shipments
．
The settlement was
done smoothly after the
bank
negotiation
．
In
October
，
they successively
exported 7
consignments
，
taking into
account the
previous settlement was in
good condition
，
they chose
D/P as collection method for
settlement
，
totaling
about
USD
270000
．
Although
the
collecting
bank
repeatedly
urged
the
foreign
businessman
，
the
American buyer did not pay to redeem
bills
．
In March
，
2009
，
the company
learnt that the goods had been picked
up by the client with a copy of the bill of
lading
，
then they
demanded the bank to return the
documents
．
In April, the
company got the original bill of lading
and with it to negotiate with the
shipping company American Brothers
Ltd
．
but the company was
rejected on the grounds that the bill
of lading was a straight bill of
lading
，
in accordance with
local
practice
，
the consignee may
pick up the goods without the original bill of
lading
．
At this
point
，
the company
suffered huge economic losses by losing both the
goods and payment
．
1