An exporter from the U.S. has a "gentleman's agreement" to sell a piece of machinery to a customer in Brazil. At a local trade show in Sao Paulo, a deal was made to send a sample piece of machinery to the customer for the price of $3,000. The machinery was delivered. The exporter sent an invoice and after six weeks inquired about payment. The importer (customer) complained they had to pay for transportation and import duties. They also complained about damages to the equipment from the unloading process. Therefore, they would not be paying the invoice.

a. What recourse (what actions can they take) does the exporter have? Be specific.

b. Does the CISG allow for an oral or spoken contract? Explain in detail how this might affect (or not) this agreement.

c. Does the UCC in the U.S. allow for an oral contract? Explain in detail how this might affect (or not) this agreement.

d. Name at least three things the exporter can do in the future to avoid this situation in the future. Be specific and explain how each would help mitigate the effects of this situation.

2) An exporter in China makes an offer to sell plastic toys to a customer in France for 4 Euro each. The offer is good for 30 days.

a. According to the CISG, can this offer be withdrawn in 15 days? Explain in detail.

b. If the customer in France comes back with a suggested price of 3.5 Euro, is this now the contracted price? Explain in detail.

3) A Swiss exporter of cheese promised to sell 200 KG of premium cheese per month to a specialty importer in South Africa. For the last 24 months, the Swiss exporter often missed the target - shipping between 100 and 150 KG of cheese. In the third year of business, the South African importer suddenly terminates the contract for nonperformance.

a. Is this allowed under the CISG? Explain in detail.

b. Did the shortage of shipments constitute nonperformance? Be specific and explain in detail.

c. What difference does it make that the importer had routinely accepted this failure to perform? Explain in detail.