case_2_6_When_International_Buyers_and_Sellers_Disagree

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· No cover page

· Try to put two blank spaces after each period

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Introduction

The case study involves a dispute between two companies’ one in USA and the other in Germany. The dispute is over an order of pork livers 30,000 lbs. The case shows how cultural background is important in international trade and disagreements should be controlled.

Question 1

Who's Law?

The United States law would be applicable in this matter. According to the set principles of Contracts for the International Sales of Goods (CISG), the party which is liable to fulfilling the contract, it’s laws would be applicable whereby in this case is the US United States .However states in America have different laws, hence the state where the contract was entered would be applied.

The case does not have any jurisdictional clause as per the contract; therefore rulings of CISG are applicable. CISG rules apply because the pork sold was of good quality and the right weight, Germany did not give specifications on their order hence they cannot demand for settlement.

Question 2

The seller and buyer in this dispute are from different countries USA and Germany respectively hence their laws are different. USA law system is common law while for Germany is civil law, therefore there would be different outcomes, and hence the dispute is heard in either country.

If the dispute was heard in US court, the seller would be victorious. This is because the seller followed all the terms of their contract. The buyer never mentioned of specifically male pork livers. Therefore the seller had an added advantage.

However if the matter was heard in a German court, either of the parties were likely to win. The buyer could win because, the order placed was as per their set standards as per the local market hence they were to be followed. However the seller could also win based on the terms of the contract which was being adhered to there was no mention of specifically male pork livers.

Question 3

Part A

In order to determine which laws should be applicable, there should be a clause on the contract dealing with jurisdiction. The clause should mention which country’s laws are applicable between buyer and seller in the occurrence of a dispute. The clause would prevent misunderstandings on how to deal with the dispute. (Bianchi, 2006).missing period here Comment by Dr. McFaul: No period before citation

Part B

The contents of the contract should have stated strict adherence to the universally accepted standard of a contract for instance Contracts for the International Sales of Goods (CISG),which would dictate where the matter in case of a dispute it can be heard and resolved.

Part C

When the seller and buyer are conducting their international trade transactions there should be proper understanding of people diverse backgrounds and their culture. The USA seller is supposed to research before shipping the pork so as to deliver according to the culture of Germany which is “customary merchantable quality.”

Question 4

In this dispute the American seller sold the pork liver as according to his own culture and background in the international market which was a bad decision by him. Self-Reference Criterion was a primary barrier towards the American seller internationally, since Germany is a foreign market with its own values such as “customary merchantable quality.”

Conclusion

When business is being conducted on international markets it is important to draft a contract which is conclusive with details such as the quality of the goods needed, price, date and all other important facts related to the goods being delivered. However the culture and background of the foreign market should be considered so as to avoid disputes between buyer and seller in foreign jurisdictions. (Cateora, Gilly, Graham, & Money, 2016, p. xx).missing period

References Comment by Dr. McFaul: APA SUPPORT WEB SITES If you need help with putting your references in APA format on your reference page, please see this web site (select APA at the top of the web page) http://www.calvin.edu/library/knightcite/ Remember, APA requires that the second & subsequent lines of the references are indented five spaces and that your references are in alphabetical order. The first line must be aligned to the left 1” margin. First names are NEVER written out for the reference page per the APA Manual. Times New Roman 12 font must be used. Finally, remember that the reference page and citations must match exactly – it is considered a serious academic error if they do not. Please check out http://owl.english.purdue.edu/owl/resource/560/01/ for a proper format in APA. For best results, refer to the APA Manual – 6th Edition.

Bianchi, Constanza C.(2006) "Do Cultural Differences Affect International Buyer-Seller Relationships?” Journal of International Consumer Marketing 18(4):pp. 7-32.

Cateora, P. R., Gilly, M. C., Graham, J. L., & Money, B. (2016). International marketing. Missing all required information in APA formatting