Chicago Prime Packers Inc. was a US corporation with its principal place of business in Colorado. Northam
Question:
Chicago Prime Packers Inc. was a US corporation with its principal place of business in Colorado. Northam Food Trading Company was a Canadian corporation with its principal place of business in Montreal. In March 2001, Chicago Prime sold Northam 1350 boxes of government-inspected, fresh, blast-frozen, pork back ribs, which Chicago Prime purchased from Brookfield Farms. The price for the ribs was $178,200.00, and payment was required within seven days from the date of shipment. The ribs were stored at three different locations en route to Northam’s customer Beacon Premium Meats but at all times were stored at or below acceptable temperatures. However, the ribs ultimately proved to be spoiled and were condemned by the US Department of Agriculture. Chicago Prime brought a breach of contract action against Northam due to its refusal to pay for the ribs. Chicago Prime claimed Northam failed to abide by the CISG’s requirements of timely examination of the goods and notice of the alleged lack of conformity within a reasonable time. Northam claimed the ribs were shipped in sealed, non-transparent cartons or packages and could not be easily inspected. Should Chicago Prime recover on its claim despite the spoiled nature of the ribs? Should Northam be excused from its inspection obligations due to the fact that the condition of the ribs could not be easily ascertained?
Step by Step Answer:
Dynamic Business Law
ISBN: 9781260733976
6th Edition
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs