Here is the Scenario: Fun Fashion Clothing (Fun Fashion), a US company, has its line of clothing manufactured in India, by Glamor Fabrics (Glamor). Glamor supplies garments to many U.S. companies using the designs supplied by the US company. Glamor purchases fabrics from around the world and subcontracts some of the clothing assembly to lower labor cost manufacturers in other countries. Glamor received an initial shipment of non-conforming garments from one of its Taiwanese suppliers; the garments used 9 oz. cloth instead of the 12 oz. cloth specified in the contract. Glamor shipped the goods containing the non-conforming goods to Fun Fashion; further shipments are to come. Fun Fashion wants to solve the current problem and avoid future problems. It's thinking of canceling the contract by refusing the non-conforming garments and purchasing cheaper garments from a Vietnamese manufacturer. Meanwhile, Fun Fashion is without garments for the upcoming fashion season and wants to cancel its contract with Glamor. Fun Fashion wants get out the contract by refusing the garment and purchasing cheaper garments from a Vietnamese manufacturer. Please discuss the following: 1. To which, if any, international tribunals could Fun Fashion turn to resolve its issue? Under what rules? 2. To which, if any, international tribunals could Glamor turn to resolve its issue? Under what rules? 3. What are Fun Fashion's contract rights concerning the non-conforming goods? 4. What are Glamor's contract rights concerning the non-conforming goods? 5. What are some strategies for reducing risk to both Fun Fashion and Glamor, particularly some of the terms that should be in future contracts that might minimize the types of problems FFC and Glamor now faces? Please support your strategies with full IRAC analyses.© BrainMass Inc. brainmass.com October 25, 2018, 9:17 am ad1c9bdddf
1. To which, if any, international tribunals could Fun Fashion turn to resolve its issue? Under what rules?
The International tribunal that could resolve this issue and holds jurisdiction over International sales contracts the United Nations Convention on Contracts for the International Sale of Goods from 1980. This tribunal established a global set of rules for contracts regardless of the different legal systems consisting of common law, civil law, and social law as each party regardless of the country they reside in is treated the same.
2. To which, if any, ...
United Nations Convention on Contracts for International Sale of Goods
Convention on Contracts for the International Sales of Goods
In the previous Discussion Board, revenue generating activities were discussed involving countries not adhering to the United Nations platform of Convention on Contracts for the International Sales of Goods (CISG). Regardless of whether the foreign country has accepted this platform or not, ultimately from time to time, disputes regarding business activities are going to take place. Therefore, what are the legal remedies that national and international businesses can rely on to seek some sort of restitution?
Using the Internet and the library, select two countries of you choosing, and research their laws and regulations pertaining to the settlement of disputes that arise through business transactions.
Address the following questions:
What are the benefits of utilizing the negotiation process first?
How much power and authority could the WTO enact during this process?
What are the implications of choosing private law to seek ratification? Explain.
What are the ramifications of choosing the governing law? Explain.