Contract draft and answer questions for Detroit Mini Safe

Please respond to the following two assignments.

Assignment 1: Scenario Analysis and Discussion

Read the case scenario provided below. Based on the information provided in the case scenario and the readings for this module, prepare a contract that will protect your company.

Scenario

You are the Vice President of Sales for Detroit Mini Safe, a U.S. manufacturer of small fireproof safes with headquarters in Detroit, Michigan. The raw materials used in making the safes are sourced from Japan, Canada, and Saudi Arabia. You have been approached by a group of Chinese buyers who are interested in purchasing a large quantity of your model 1505 mini safes. The Chinese buyers submitted an order consisting of the following pertinent information:

? Name of Company: Chinese Safe Distributors
? Address: 35 Taishan Rd, E.D.Z., Jiashan, Zhejiang, China
? Description of Goods: 5000 Model 1505 mini safes with keypad combination
? Price: $250.00 each
? Payment Terms: Open account, payable in U.S. dollars
? Shipping: Seller to ship the goods by ocean container to Shanghai within 90 days after acceptance of order

The selling price includes the cost of the good, marine insurance, and cost of freight (CIF). Draft a standard contract containing terms and clauses applicable between the parties. Consider requirements found in Chapters 7 and 8 of your textbook as well as any supplemental resources.

Write the contract draft in a Microsoft Word document. Please cites inside and outside your paper also use more resources (references) by following APA style.

Assignment 2: Scenario Analysis and Discussion

Read the case scenario below. Based on the information presented in the case and the readings for this module, prepare answers to the questions provided after the case. You may find individuals in your company's logistics or international compliance departments who are good sources of information.

Case Scenario

You are the Vice President of Sales for Detroit Mini Safe, a U.S. manufacturer of small fireproof safes with headquarters in Detroit, Michigan. You entered into a contract with Chinese Safe Distributors to supply model 1505 mini safes. Each safe weighs approximately 15 pounds. You just received a purchase order from China Safe Distributors for 2500 safes to be delivered to their warehouse in Jiashan.
Name of Company: Chinese Safe Distributors
Address: 35 Taishan Rd, E.D.Z., Jiashan, Zhejiang, China.
Description of Goods: 2500 qty Model 1505 Mini Safe with keypad combination
Price: $250.00 each

Based on the information provided in the case scenario, answer the following questions:

Q 1. The order made a request for payment on an open account. They are willing to consider other terms, but they do not want to purchase against documents unless they can inspect the safes to ensure quality and to locate any possible damage. What method of payment will your company find acceptable? Prepare a letter to the Chinese company explaining the best options, your company's preference, and reasons why this option is fair to both parties. Provide information on how you can address their concerns about the quality and damage issues.

Q 2. The order specified that China Safe Distributors would like to consider the cost of shipping before they decide whether to handle the arrangements themselves. Using several of the most relevant international commercial terms (Incoterms), prepare a letter to your client providing the various methods and costs for transporting the safes. Suggest the most appropriate method of transportation, and provide transit times from Detroit Michigan to Shanghai, China. Assume that China Safe Distributors does not have any experience in this area and that it will be necessary for you to explain the responsibilities of all of the parties for your final recommendation and support your selection.

Q 3. What documents will be necessary for this shipment? Provide a brief description of the purpose and use of each document as well as the party responsible for creating the document.

Q 4. Assume that China Safe Distributors agreed to CIF terms. Detroit Mini Safe arranged for transportation by XYZ Ocean

Carriers and purchased an "all risk" insurance policy from an American surety company. The 2500 Model 1505 Mini Safes were loaded into a container and placed onboard a U.S. flag vessel on June 1. Twenty-four hours after sailing, the vessel was hit by bombs from a terrorist attack. Because of the damage, the vessel sank to the bottom of the ocean. Evaluate the possible legal ramifications for each party resulting from the loss of the cargo.

Write the answers in a Microsoft Word document. Please cites inside and outside your paper also use more resources (references) by following APA style.