International business law: MPFree example

Thèmes abordés

International business law MP3 MPFree Euphoria Eugene CISG

Résumé du document

Company designs and sells a newly-invented MP3 player, the MPFree, that plays any music it can receive wirelessly from the Internet and that works with wireless earphones. As vice-president of this 75-person company located in the fictional country of Euphoria, we have to advise Eugene, one of our managers, by helping him dealing with three main situations that talk about International Business Law. We should also specify that Euphoria is a member of the "United Nations Convention On Contracts For The International Sale Of Goods", known under the acronym CISG.

Extraits

[...] Furthermore, Anna has to be fired for serious misconduct and concerning SmallCo, we should make a commercial compromise if the contract could not be breached. Besides, we should hire Betty because age discrimination is not demonstrated in this case but at the same time Eugene has to carefully analyze all the pros and cons hiring Betty due to a conflict of interest from the acquaintance with Anna. And we have to make sure that non- competition clauses are included in each employee's contract. Eugene also has to better reinforce the communication between subordinates and top managers to establish standard rules in the decision process. [...]

[...] At the same time, Buyer could claim reparation of the MP3 players and a new shipping. The thing is that Company gets the MP3 players with Buyer's printed logo back without getting any payments in return. Company could thus accept the price reduction and reship the same goods. However in the case where Buyer does not want to pay, this latter will be in breach of contract and Company will have to sell its MP3s to another customer. But, considering the price of modifying and repairing the damaged MP3s, what could be the best solution? [...]

[...] We have first to figure out the discrimination age, enforceable in Euphoria. Indeed, Betty is potentially going to join Company and Anna could be fired. Company could fire Anna and hire Betty only in the case if Anna is dismissed for serious misconduct concerning the purchase of stocks of SmallCo. Concerning the fact that Betty casually mentioned that her “partner” Anna was the one who suggested that she works with Company, it can appear a conflict of interest in hiring Betty and firing Anna because she can go working for a competitor. [...]

[...] Besides, the threat that Anna will tell SmallCo to cancel its purchase of MP3 players from Company could be included in this conflict of interest and can be affiliated to a breach of the professional secrecy, still in effect after her layoff. As we saw in the Everenv. A.G. Edwards case, the third issue deals with the non-competition clause of Anna if she is fired. In fact, we have to look at her contract once again and check if there is a non-competition clause after being dismissed or having quitted. Is Anna able to go working for another company that does the same business? [...]

[...] In addition, concerning moisture, the CIF incoterm transfers the risk from the seller to the buyer when the goods pass the ship's rail. According to Article 36 of the CISG, seller is liable in accordance with the contract and this Convention for any lack of conformity which exists at the time when the risk passes to the buyer, even though the lack of conformity becomes apparent only after that time”. However, in our case, moisture occurred from the ship's hull because of external environment. [...]