Share
Explore BrainMass

Jolly Canning Co. Case Study

Answer the question as if you are counsel for Jolly Canning Co in 200 to 300 words

The Jolly Canning Co. in Hawaii agreed to sell 10,000 cases of canned green beans to the Merry Produce Co. in New York. The terms were FOB Bigport in Hawaii. The parties agreed that the governing rules were Incoterms 1990. Jolly, by mistake, delivered 10,000 cases of canned corn to the carrier in Bigport. Moreover, the bill of lading clearly stated that goods were canned corn. While the goods were in transit, they were damaged by seawater because of the carrier's negligence. Jolly sues the carrier, but the carrier challenges Jolly's standing (right) to sue. The carrier claims that the risk of loss had passed to Merry Produce (the consignee on the bill of lading) as soon as the goods had passed the ship's rail. Is the carrier correct? Should Jolly's suit be dismissed? Explain why or why not.

Solution Preview

The terms are FOB Bigport in Hawaii. This means Free on Board. The seller is responsible for delivering the goods to the ship. The responsibility then passes on to the seller. These terms are supported by Incoterms 1990. The carrier is correct in challenging the right of Jolly to sue The plaintiff should be Merry Product. Even though the consignment was incorrect by mistake the consignee was correct and Merry Produce was mentioned as the consignee on the bill of lading. According to ...

$2.19