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?
[...] 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. [...]
[...] The last problem exposed in this situation is the one of a consumer that experienced problem with the CoolPhone interfering with his GPS system. In this case I suggest that the Company refers to all the regulation tests that the CoolPhone went trough and see if this was tested or not. The Company should thus contact the person in charge and ask for answer. Because nothing is perfect, negligence or a breach of care duty could have occurred during the manufacturing process. Nothing can be 100% sure; it is indeed possible that the Phone has a default. [...]
[...] Other common advantages of Panama's IBC's are: - Asset Protection - Income Tax Reduction or elimination - No inheritance, succession or gift taxes - Freedom from currency exchange - Reduction in legal liabilities, since the company has limited liability - Reduction in operating expenses - Easy access to North American and European Capital Market - No International Trade Tariffs - No annual tax return requirements - No import/export quantity limitations Recommendation I would organize work among employees and create a team dedicated to this informative duty. I would establish deadlines and objectives to motivate their work. I would then compare them to what I found and organize an exceptional meeting with all the persons involved. Finally, I would submit the conclusions to a lawyer to finalize the work and begin the Company expansion planning. [...]
[...] If that is the case the Company should deal directly with the final consumer to see if a solution can be found. Also Company has to be careful, because it could also be negligence from the consumer or the GPS that caused the problem and not the phone. If negligence occurred, the company is not liable and the customers should not expect any compensation. Recommendation I would indeed suggest that the company call urgently the person or company in charge of the Cool Phone testing to see who is liable for the interference problem”. [...]
[...] 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. Situation 1 In this situation we have a regular client that complains about delivery delays, and who wants to be compensated for that. It also appears that some goods were damaged. 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 we going to do? In this case we have to look closely to the contract. [...]
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